The New Jersey Board of Public Utilities has denied a petition by EDF Renewables for funding for the 25MW Nautilus offshore wind demonstration project off Atlantic City.
The project “does not demonstrate the economic and environmental benefits” required under the state’s Offshore Wind Economic Development Act, according to the board.
Several reasons were cited for the decision, including that the project did not provide the necessary information for the board to validate.
Further data on assumptions and inputs for the scheme’s “economic multiplier modelling” were not provided, the board said.
“The price quoted by Nautilus was too high given the unsubstantiated benefits, and therefore an unacceptable burden for the state’s ratepayers,” added the board.
“This includes the proposed OREC starting price plus the annual escalator. Board staff made this clear to Nautilus at multiple points during negotiations over the last three months, but the price never came down to an acceptable level.”
EDF Renewables regional development manager Doug Copeland said the decision is “disappointing to say the least”.
“With permitting already in place, Nautilus is the only project capable of giving New Jersey an early lead in the offshore wind space race,” he said.
“This rejection will delay workers’ access to local and real-world training on offshore wind construction and slow early investments in critical supply chain infrastructure needed to support more large-scale projects.
“We want to thank the greater Atlantic City community and labor leaders for their support through this process and hope to work with New Jersey to identify other opportunities for the future.”
The French energy giant had lined up MHI Vestas to supply 8.3MW turbines for the three-unit project.
NJBPU meanwhile unanimously voted to adopt the Offshore Wind Renewable Energy Certificate mechanism for funding future projects.
Governor Phil Murphy said: “Today’s actions demonstrate my Administration’s focus on developing a robust offshore wind market and achieving 3500MW of offshore wind and 100 percent clean energy by 2050.
“The offshore wind program is a key component of the state’s strategic economic growth plan and a critical strategy to mitigate the impacts of climate change.”
Later this week, the board will also consider selecting an economic consultant to assist in the evaluation of the applications for the ongoing 1100MW solicitation.
If approved, the board will send the award recommendation to the New Jersey Department of the Treasury. Upon review and approval, the winning bidder and contract will be announced publicly.