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Orsted to build New Jersey's first offshore wind farm; EDF sets record offshore price of 44 euros/MWh
Our pick of the latest wind power news you need to know.
Denmark's Orsted to build 1.1 GW offshore wind farm in New Jersey
New Jersey has selected Orsted’s giant 1.1 GW Ocean Wind project as the preferred proposal for its first ever large-scale wind farm, the company announced June 21.
The New Jersey Board of Public Utilities (NJBPU) has selected Orsted to negotiate a 20-year offshore wind renewable energy credit (OREC) for Ocean Wind, following competitive bidding from groups such as Norway’s Equinor and a joint venture between Shell and EDF Renewables.
Due online in 2024, Ocean Wind is the largest single U.S. offshore wind procurement to date and matches the size of Europe’s largest projects. The world's leading offshore developer, Orsted plans to increase its installed capacity from 5.6 GW to 15 GW by 2025.
Owners' share of installed offshore capacity
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Ocean Wind will be located off of Atlantic City, New Jersey and is supported by energy group Public Service Enterprise Group (PSEG). Non-utility subsidiaries of PSEG will provide energy management services and may lease land to the project. PSEG also has an option to become an equity investor in the project, Orsted said.
Orsted plans to establish an operations and maintenance (O&M) base in Atlantic City, to support serve the facility, it said
Ocean Wind expands Orsted's U.S. offshore construction portfolio to a capacity of 2 GW.
Orsted plans to commission the 120 MW Skipjack wind farm off Maryland by 2022. Through a 50-50 joint venture with U.S. utility Eversource, Orsted plans to commission the 704 MW Revolution Wind project by 2023, supplying power to Rhode Island and Connecticut. Orsted and Eversource will also commission the 130 MW South Fork wind farm, for power to Long Island, by 2020.
Last October, Orsted acquired 100% of U.S. group Deepwater Wind, raising its U.S. development pipeline to almost 9 GW.
EDF group wins French offshore wind tender at 44 euros/MWh
An EDF-led consortium including Enbridge and Innogy have won a tender to build a 600 MW offshore wind farm at Dunkirk, France at a record-low price of 44 euros/MWh ($50.1/MWh), France's energy regulator said June 21.
The French government raised its national offshore wind objectives following the low price.
The Dunkirk wind farm will be situated around 10 km off the coast of northern France and is scheduled to come online in 2026.
Eight groups participated in the tender and bid prices ranged between 44 euros/MWh and 60.1 euros/MWh, according to reports.
The government now plans to tender for 1 GW of offshore wind capacity per year up until 2028, French Prime Minister Edouard Philippe told Parliament. France had previously set a target of 2.5 GW installed capacity by 2023 and 5 GW by 2028.
French state-controlled EDF had already won three French offshore wind projects at Saint-Nazaire, Fecamp and Courseulles-sur-Mer, in tenders held in 2012.
Since then, legal procedures by opposition groups have slowed down development. France's first offshore wind farms are expected to be connected to the grid in 2020-2022.
France is also a key market for floating offshore wind projects. Four pre-commercial floating wind projects are forecast to be installed in French waters by 2021 and France could build 6 GW of floating wind capacity by 2030, according to wind industry group France Energie Eolienne (FEE).
Pre-commercial floating wind projects due online by 2022
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Source: WindEurope's Floating Offshore Wind Energy: A Policy Blueprint for Europe (October 2018).
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