“I look forward to working with the members of the New Jersey Renewable Energy Task Force and the public on future wind energy projects proposed for these leases by RES America Developments Inc. and US Wind Inc”. RES America Developments Inc. bid $880,715 for the southern lease area that includes about 160,480 acres.
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According to an analysis prepared by the U.S. Department of Energy’s National Renewable Energy Laboratory, if fully developed, the area leased could support about 3.4 GW of commercial wind generation – enough electricity to power about 1.2 million homes.
“Today’s auction underscores the emerging market demand for renewable energy and marks another major step in standing up a sustainable offshore wind program for Atlantic coast communities”, U.S. Interior Secretary Sally Jewell said in the statement.
A third company, Fishermen’s Energy, participated in the auction but did not win.
The lease sales cover almost 344,000 acres of ocean floor.
The winners will have one year to submit a Site Assessment Plan for approval by BOEM, after which they will have four and a half years to prepare a Construction and Operations Plan (COP).
“US Wind doesn’t come with experience other than with winning a prior lease sale”, Firestone said.
In New Jersey, one source of frustration among offshore-wind advocates is the fact that the Christie administration has failed to come up with a financing mechanism to help pay for the wind farms, primarily by subsidies from utility customers. To see a map of the New Jersey Wind Energy Area, go to boem.gov/New-Jersey.
A few years ago, New Jersey’s elected officials set ambitious goals for New Jersey’s big potential as a trailblazer in offshore wind energy, but little has happened since. Described as a research project, BOEM said the two wind turbine generators planned by Virginia would set the course for a future offshore wind industry in the state.
Meaningful government support for offshore wind, such as that promised by the Obama administration, is necessary for this development. For each unit of electricity an offshore wind facility produces, it could cash in an OREC, receiving in exchange a predetermined amount from the buyer of the energy.
The board previously rejected Fishermen’s proposal, saying the project is too costly for ratepayers and that the proponent has not demonstrated its financial integrity.
Company officials argued the subsidies would be lower than the BPU estimate because the company secured a federal grant.
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The workshops by BOEM are meant to provide the Department of the Interior with a better understanding of how the area, known as the NY Call area, is used for fishing before it determines which areas should be made available for leasing.
