Ørsted, two others bid in New Jersey's 1.1-GW offshore wind solicitation

A picture from Cathie Associates visit to the US’ first commercial offshore wind farm; Block Island.

January 3 (Renewables Now) - Three companies, including Denmark’s Ørsted A/S (CPH:ORSTED), have filed bids with the New Jersey Board of Public Utilities (NJBPU) in response to a solicitation for 1,100 MW of offshore wind power.

The state agency said in a press release on Friday that its staff and an economic consultant will now be reviewing the applications to provide a recommendation to the Board, which is expected to make a decision in the spring of 2019.

Danish offshore wind major Ørsted said separately that, as part of this process, it has submitted a bid to the NJBPU to build its Ocean Wind project about 15 miles (24.1 km) off Atlantic City. The company noted that Public Service Enterprise Group (NYSE:PEG), also known as PSEG, will have the chance to become an equity investor in the project. If the scheme gets approved, PSEG’s non-utility affiliates will provide energy management services and potential lease of land for use in project development.

Representatives of Atlantic Shores Offshore Wind and Norway’s Equinor ASA (NYSE:EQNR), formerly Statoil, have informed the media that the two companies have made separate bids as well. The former was created last month as a 50/50 joint venture between EDF Renewables North America and a unit of oil and gas major Royal Dutch Shell Plc (AMS:RDSA). Its purpose is to develop an offshore wind lease area of 183,353 acres (74,200 ha) off the coast of Atlantic City on the US Outer Continental Shelf. The partners said in December that the specific area can accommodate about 2.5 GW of offshore wind turbines.

New Jersey Governor Phil Murphy has set a goal for 3,500 MW of offshore wind capacity to be deployed by 2030. He has asked the NJBPU to consider two additional solicitations of 1,200 MW each in 2020 and 2022.

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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