March 7, 2011 - long-term pricing for offshore wind in New Jersey

New Jersey is pursuing offshore wind in earnest.   The Board of Public Utilities will be holding a public open question and answer session in Trenton on March 25, 2011, to discuss the recently adopted Offshore Wind Rules (N.J.A.C. 14:8-6).  This comes just over a month after an affiliate of Fishermen’s Energy of New Jersey filed a petition to the New Jersey Board of Public Utilities seeking approval for offshore renewable energy certificates (ORECs) for a wind project to be developed offshore of Atlantic City.

The project, to be developed pursuant to the New Jersey Offshore Wind Economic Development Act, would be a six-turbine demonstration-scale project about 2.8 miles east of Atlantic City, generating up to 25 megawatts of energy.  Governor Christie signed the Offshore Wind Economic Development Act in 2010, authorizing the development of up to 1,100 megawatts in offshore wind capacity off New Jersey.  To help fund such projects, the Act also gives the New Jersey Board of Public Utilities the authority to set a long-term price for ORECs, guaranteeing up to 20 years of price certainty for developers.  In recognition of the economic value of siting offshore-wind associated manufacturing capacity in the state, the Act also provides $100 million in tax credits for the creation of such jobs.

Fishermen's project is in the race to be the first grid-connected offshore wind facility in the country.  Will they cross the finish line first?