The New Jersey Board of Public Utilities (BPU) has officially canceled its fourth offshore wind solicitation, citing economic concerns and changing market dynamics. The decision comes after three initial bidders-Corio-Total-Rise, Attentive Energy and RWE-National Grid's Community Offshore Wind-withdrew, leaving only Atlantic Shores to submit a final, best bid.

Christine Guhl-Sadovy, president of the BPU of New Jersey, explained that Shell's withdrawal as an equity partner in the Atlantic Shores project and its exit from the U.S. clean energy market, along with the uncertainty generated by federal actions and permitting, compounded by former President Donald Trump's indefinite withholding of approvals, were determining factors in the cancellation. Despite the benefits that the offshore wind industry can offer, the Board concluded that it was not a responsible decision to proceed with the award at this time.

“Offshore wind remains a unique economic development opportunity and key to achieving energy independence for the region and the country,” Guhl-Sadovy said. He also reiterated the BPU's commitment to working with Governor Murphy and other state agencies to build a successful offshore wind industry in New Jersey, while thanking Atlantic Shores for its efforts in this process.

Rep. Chris Smith (NJ-04) did not mince words in dramatizing the situation, asserting that industrialization of the oceans is “unfeasible” and will bring “unimaginable cost.”

Smith criticized the economic viability of offshore wind projects, highlighting that even the Murphy Administration, which has aggressively promoted renewable energy, has recognized the financial challenges. “This is truly astounding, given Atlantic Shores was allowed to rebid in the fourth solicitation to receive an even more favorable deal despite skyrocketing costs,” he added.

Christine Guhl-Sadovy, President of the NJ BPU, explained the rationale behind the decision: “A number of reasons led to this decision, notably Shell backing out as an equity partner in the Atlantic Shores project and withdrawing from the American clean energy market, as well as uncertainty driven by federal actions and permitting.”

Smith recently urged the Bureau of Ocean Energy Management (BOEM) to comply with the Executive Order and cancel upcoming public hearings on offshore wind projects. Additionally, he has called on the BPU to halt pending reviews for infrastructure needed to bring offshore wind power ashore, particularly in Sea Girt, where residents have voiced concerns over large-scale electrical cables running through residential areas.