JERSEY TO MAKE OFFSHORE INVESTMENTS

Incentives are important: The New Jersey Board of Public Utilities is offering up to $19 million in grants to build an offshore wind pilot project. It has 3 competing takers.

A Renewable Electricity Standard (RES) is important: New Jersey’s RES requires the state’s utilities to obtain 20% of their power from New Energy by 2020 so wind generated electricity is virtually certain to be marketable.

Regional demand is important: This will be coastal power generation where most power comes from the west.

A wind energy industry spokeswoman described the 3 bids as "…a strong response…” Christine Real de Azua, spokeswoman, American Wind Energy Association (AWEA): "Obviously, there's growing interest in developing wind."

Cost will be significant as the offshore industry is still incipient. New turbine technology must be proved. And red tape may be a problem because regulations for federal waters are still being developed.

Given the findings of studies done on the wind energy assets of the region (see PLUG IN TO EAST COAST WINDS), moving offshore will be a great investment. The study suggests there is enough wind energy there to power the entire East Coast, TEN TIMES the energy potential of offshore oil and gas resources - and no danger of spills!

Like much of the Mid-Atlantic region, New Jersey has enormous coastal and offshore wind assets. (click to enlarge)

The Mid-Atlantic region is also likely to be relatively easy to develop because the wind is steady and the continental shelf slopes gradually, allowing developers to build far offshore – beyond bird migration routes and aesthetic objections – at depths of 100 feet or less.

Finally, courage and vision are important. Daniel Cohen, president, Fishermen's Energy of New Jersey L.L.C., a consortium of commercial fishermen bidding to build the installation: "We have chosen to treat offshore energy as an opportunity rather than a threat…to harvest the sea for energy and fish, side by side, in an environmentally acceptable manner."

It is people like Cohen who made the United States great. He’s the kind of guy who fits perfectly in the wind energy industry.

A 2005 Governor's Blue Ribbon panel found New Jersey has a 2500-megawatt offshore wind potential! (click to enlarge)

Three propose wind farms off Jersey Shore
Sandy Bauers, March 5, 2008 (Philadelphia Inquirer)

WHO
Public Service Enterprise Group Inc., owner of New Jersey’s biggest utility, PSE&G (Paul Rosengren, spokesman); Bluewater Wind L.L.C. (Jim Lanard, head of strategic planning), a wind-farm developer; Fishermen's Energy of New Jersey L.L.C., a consortium of commercial fishermen (Daniel Cohen, president); The New Jersey Board of Public Utilities

WHAT
PSE&G, Bluewater and Fisherman’s Energy are competing for the right to build a New Jersey pilot project offshore wind installation and up to $19 million in grants from the state Board of Public Utilities.

A Rutgers University study identified details about Jersey wind. (click to enlarge)

WHEN
The Board will begin its decision-making process in two weeks. Hopefully, permitting and regulatory approval won’t be too agonizing. A realistic guess would be that the offshore facility will be producing power within five years.

WHERE
- The competing proposals would place pilot projects between three and 16 miles off Jersey’s Atlantic or Cape May County.
- Bluewater has a 450-megawatt, 150-turbine proposal for 11.5 miles off Rehoboth Beach in Delaware through 3 of the 4-agency Delaware approval process.
- Europe has 24+ offshore installations. The U.S. has none but proposals are moving forward in (besides Delaware) Massachusetts and Texas.

Rutgers found big winds at the shore and farther offshore where sea depths remain suitable. (click to enlarge)

WHY
- PSEG: 96 turbines 16 miles out.
- Bluewater: 116 turbines 15 1/2 miles southeast of Atlantic City.
- Fishermen's Energy: 74 turbines, eight about three miles off Atlantic City, then 66 six to seven miles out.

Jersey's first wind installation was a 5 tower, 7.5 megawatt facility at Atlantic City built in 2005. Bigger things are coming. (click to enlarge)

QUOTES
- Jim Lanard, head of strategic planning, Bluewater Wind, on the aesthetics of building far offshore: "…the turbine is going to be half the size of a thumbnail and as thin as a toothpick…People are going to be going out for picnics [to see them]…"
- Jeff Tittel, director, Sierra Club of New Jersey: "It's the first step to really implementing the governor's global-warming initiative."
- Matt Elliott, Environment New Jersey: " I can't wait to see them start construction."