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Ballooning costs threaten New Jersey offshore wind project

E&E News|Benjamin Storrow|April 25, 2024
New JerseyTaxes & SubsidiesOffshore Wind

The developer of one of the largest ocean wind proposals in the U.S. plans to ask the state for more money. A New Jersey offshore wind developer plans to submit a new bid to state utility regulators due to rising construction costs that have prompted a spate of canceled power contracts within the fledgling industry.


The developer of one of the largest ocean wind proposals in the U.S. plans to ask the state for more money.

A New Jersey offshore wind developer plans to submit a new bid to state utility regulators due to rising construction costs that have prompted a spate of canceled power contracts within the fledgling industry.

The coming move by Atlantic Shores Offshore Wind would restructure its contract governing the sale of electricity from its wind farm to the state, raising questions about the future of one of the largest offshore wind projects proposed in the U.S. The company is seeking more money from New Jersey for its electricity, according to three people who are familiar with the developer’s plans.

The decision makes Atlantic Shores …

... more [truncated due to possible copyright]

The developer of one of the largest ocean wind proposals in the U.S. plans to ask the state for more money.

A New Jersey offshore wind developer plans to submit a new bid to state utility regulators due to rising construction costs that have prompted a spate of canceled power contracts within the fledgling industry.

The coming move by Atlantic Shores Offshore Wind would restructure its contract governing the sale of electricity from its wind farm to the state, raising questions about the future of one of the largest offshore wind projects proposed in the U.S. The company is seeking more money from New Jersey for its electricity, according to three people who are familiar with the developer’s plans.

The decision makes Atlantic Shores Offshore Wind the latest project to restructure its deal due to rising interest rates and inflation. About 60 percent of the contracts signed by U.S. offshore wind developers have been canceled since the start of last year.

The news marks another setback for the U.S. offshore wind industry, which was already struggling to contain the fallout of three canceled projects in New York last week. It’s also a blow to New Jersey’s climate ambitions. The state has a target of building 7,500 megawatts of offshore wind by 2035. The Atlantic Shores project would generate 1,500 MW.


Source:https://www.eenews.net/articl…

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