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Officials make 'tough' decision on offshore power project: 'Has created significant uncertainty'

"It is in the public interest."

"It is in the public interest."

Photo Credit: iStock

Despite a strong desire to install a massive offshore wind farm, New Jersey is hitting pause on future wind energy projects. 

What's happening?

The New Jersey Board of Public Utilities has decided to delay the implementation of certain offshore wind energy infrastructure projects due to "significant uncertainty" stemming from federal policy changes. This decision also included canceling the Atlantic Shores wind project, an offshore wind energy initiative aimed at generating renewable energy for New Jersey. 

"The Board finds that, due to the significant federal uncertainty in the offshore wind market, and Atlantic Shores inability to complete Project under the terms of the OREC Order, it is in the public interest to vacate the OREC Order and the Project's status as a [Qualified Offshore Wind Project]," the board's ruling reads.

In January 2025, President Donald Trump issued an executive order that would effectively pave the way to cancel plans for new offshore wind energy development. The move also rescinded previously designated areas for offshore wind farms. The Trump administration then froze new or renewed permits, approvals, and loans for wind projects.

Why is the cancellation of wind projects important?

As reported by NJ Spotlight News, the Trump administration's stance toward renewable energy projects heavily influenced the New Jersey BPU. "Today's action is a direct response to a shift in federal policy under the current administration, which has created significant uncertainty and potential for offshore wind project delays," said Christine Guhl-Sadovy, president of the New Jersey BPU.

"At the end of the day, it's very hard to lose 1,500 megawatts of electricity at a time when we need not just clean electricity but more electricity, so it's tough."

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As a casualty of the policy change, the Atlantic Shores wind project was an effort to construct a wind farm with up to 200 turbines and associated infrastructure, including substations and cables, to transmit power to the shore. The project was set to contribute significantly to New Jersey's renewable energy goals and was expected to power close to a million homes.

Wind turbines are often considered a great renewable energy resource that can help reduce our reliance on planet-heating fossil fuels. While the construction and manufacturing of wind turbines involve some initial carbon pollution, the carbon-free electricity they generate over their lifespan — simply from the wind moving the blades, as humans have harnessed in lesser forms for centuries — significantly reduces overall carbon emissions compared to fossil fuel alternatives, resulting in a positive impact on the environment. 

What's being done about the delay of future wind farms?

Ed Potosnak, executive director of the New Jersey League of Conservation Voters, emphasized the impact that the wind energy pause will have on the community. "Offshore wind is critical to our clean energy portfolio and to protecting our health, environment, and economy. Every delay forces our residents, especially low-income families and communities of color, to breathe dirty air and bear the brunt of climate change," Potosnak wrote in a statement

According to a report from EnergySage, residents in New Jersey already pay about 25% more on their electricity bills than the national average. That comes out to around $307 a month for the average customer in the Garden State.

In general, wind farms can be cost-efficient for both energy suppliers and customers. Since turbines do not require fuel, operating costs can be much lower, which can translate to lower electricity bills. This makes the cancellation of wind farms a potentially costly blow to consumers.

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