New Jersey Cancels Offshore Wind Bid Amid Market Challenges

The New Jersey Board of Public Utilities (BPU) has decided to cancel its fourth offshore wind solicitation, citing significant market challenges and the withdrawal of Shell from the Atlantic Shores project.

The solicitation initially sought 1,200 MW to 4,000 MW of offshore wind capacity but was impacted when two of three bidders withdrew, leaving Atlantic Shores as the only remaining contender.

BPU President Christine Guhl-Sadovy highlighted Shell’s exit as an equity partner, along with uncertainties in federal policies and permitting processes, as primary reasons for the decision.

“The Board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time,” she stated.

The decision and Shell’s withdrawal, which includes a $996 million impairment, underscore the broader struggles facing offshore wind projects in the United States.

These difficulties are further compounded by renewed political opposition. A recent executive order from President Donald Trump has called for an immediate halt to offshore wind leasing on the U.S. Outer Continental Shelf, while also initiating a full review of existing projects.

Despite these obstacles, Atlantic Shores remains committed to New Jersey’s first offshore wind project. The company recently obtained federal approval for two offshore wind facilities that could generate 2.8 GW of renewable energy, providing power for nearly one million homes.

This setback, however, poses a challenge to New Jersey’s clean energy goals, which aim to generate 11 gigawatts of offshore wind electricity by 2040, positioning the state as a leader in East Coast wind energy production.

Governor Phil Murphy reaffirmed the state’s commitment to offshore wind but acknowledged the difficulties the industry faces.

“Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence,” Murphy stated.

“However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence. I support the BPU’s decision on the fourth offshore wind solicitation, and I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs,” he added.