The New Jersey Board of Public Utilities (BPU) has called off its fourth offshore wind solicitation due to major market difficulties and Shell’s exit from the Atlantic Shores project.Originally aiming for 1,200 MW to 4,000 MW of capacity, the solicitation encountered obstacles when two out of three bidders dropped out, leaving Atlantic Shores as the only remaining contender.
BPU President Christine Guhl-Sadovy cited Shell’s exit as an equity partner and uncertainty around federal actions and permitting as key reasons for canceling the solicitation. “The Board determined that proceeding with the fourth offshore wind solicitation would not be responsible at this time,” she said.BPU’s decision and Shell’s $996 million impairment highlight broader challenges in the U.S. offshore wind industry.
This move comes amid renewed political opposition, with a recent executive order from President Trump calling for an immediate halt to offshore wind leasing and a review of existing projects.
Despite the challenges, Atlantic Shores remains committed to New Jersey’s first offshore wind project, recently gaining federal approval for two facilities generating 2.8 GW of renewable energy, enough for nearly one million homes.This setback impacts New Jersey’s clean energy goals of generating 11 GW of offshore wind power by 2040, aiming for 30% of East Coast wind energy.
Governor Phil Murphy emphasized the potential of offshore wind to create jobs and drive a new manufacturing supply chain but acknowledged the current industry challenges, supporting the BPU’s decision and calling for federal partnership to reduce costs and promote energy security.
