NJ Democrats face increased risks in Tuesday elections due to offshore wind cancellations.
The Future of Offshore Wind in New Jersey Hangs in the Balance as Orsted Halts Development
The news that Danish wind giant Orsted is halting development on its two offshore projects in New Jersey comes at a politically tricky time for Democrats in the state as they scramble to retain their narrow majorities in Tuesday’s elections, which will determine the future of every seat in New Jersey’s General Assembly.
The two planned Orsted projects, Ocean 1 and Ocean 2, would have brought a combined 2,248 megawatts of offshore wind energy to the state. Both had been seen as crucial to helping achieve Gov. Phil Murphy’s (D-NJ) ambitious target of reaching 100% clean energy by 2035.
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Wind developers in the United States have faced a cascading series of setbacks in recent months caused by poorly negotiated power purchase agreements, an underdeveloped offshore supply chain, and high project costs that have ballooned amid rising global demand and unanticipated global crises.
But unlike other projects in the U.S., Orsted’s cancellation threatens to carry real political implications in the Garden State, where Democrats are fighting to hold on to their narrow majority in the state Senate and Assembly in this week’s election.
On Tuesday, voters will head to the ballot to decide the fate of all 120 seats in the state Assembly and the Senate, where Democrats hold majorities of 46-34 and 25-15, respectively.
And the timing of Orsted’s announcement all but guarantees the topic will be fresh in voters’ heads as they head to the ballot boxes.
On Twitter, Assembly Republicans mocked the news, including a video titled “In Memoriam: Ocean Wind 1 & 2,” which featured a mashup of news from the offshore wind projects against a botched flute rendition of the theme song from Titanic.
U.S. Reps. Chris Smith (R-NJ) and Jeff Van Drew (R-NJ) also praised the news of Orsted’s cancellations.
Van Drew, who represents southern New Jersey, tweeted that he was “thrilled to see that Orsted has decided to pack up its offshore wind scam and leave South Jersey’s beautiful coasts alone.”
And Smith, a Republican whose district includes parts of the Jersey Shore, told the Washington Examiner on Monday that Orsted’s decision to halt development on its projects offshore New Jersey “underscores that Gov. Murphy’s radical plan to install 3,400 wind turbines along the Jersey Shore is reckless and economically flawed — regardless of how much taxpayer money he throws at foreign corporations like Orsted.”
Smith also weighed in on potential impacts to the state elections. “Instead of using the coercive power of the state to advance these projects, [Murphy] and the Democrats in Trenton should be listening to the serious concerns that I and others have raised regarding the deleterious impacts these projects will have on our local economy, commercial and recreational fishing, tourism, the health of the marine ecosystem, and commercial and military navigational safety,” he said.
“We’re close enough to the target,” Alexandra Wilkes, a spokeswoman for the New Jersey GOP, told the New York Times about winning a majority in Tuesday’s elections but noted, “We have to hit the darts right every time.”
Many have acknowledged the setbacks that commercial-scale developers face in the U.S., which all but ensure the Biden administration’s ambitious target of bringing online 30 GW offshore wind by 2030 will be impossible to reach. It also severely threatens the goals of Murphy, whose administration has targeted an even more ambitious timeline for clean power development.
Murphy blasted Orsted’s decision to halt development on the Ocean 1 and 2 projects as “outrageous,” saying in a statement that the decision called into question both the company’s credibility and its competence as it looks to bring online two remaining projects in Rhode Island and New York.
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He said his administration will make sure Orsted follows through on its earlier commitment to pay the state $300 million for failing to follow through on the projects and is reviewing “all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations.”
Still, Murphy vowed to continue pursuing new offshore projects in the state, saying that while Orsted’s cancellation was a setback, “the future of offshore wind in New Jersey remains strong.”
What are the potential political implications of the cancellation of Orsted’s offshore wind projects in New Jersey, particularly in relation to the upcoming elections and the balance of power in the state Assembly and Senate
Agenda of radical environmentalists, we should be focused on pro-growth, pro-jobs policies that benefit all New Jerseyans,” he said.
The cancellation of Orsted’s offshore wind projects has highlighted the fragility of the offshore wind industry in New Jersey and has brought into question the future of clean energy in the state.
New Jersey has been a leader in clean energy, with Governor Murphy spearheading ambitious goals to transition the state to 100% clean energy by 2035. Offshore wind has been a key component of this plan, but the cancellation of Orsted’s projects raises doubts about whether these goals can be achieved.
The cancellation also shines a light on the challenges facing wind developers in the United States. Poorly negotiated power purchase agreements, an underdeveloped offshore supply chain, and high project costs have hampered the development of offshore wind projects across the country.
However, unlike other setbacks in the industry, the cancellation of Orsted’s projects in New Jersey has significant political implications. With Democrats fighting to retain their narrow majority in the state Assembly and Senate, the timing of the announcement could sway voters’ opinions.
Assembly Republicans have seized on the opportunity to criticize the cancellation, using social media to mock the news. U.S. Representatives Chris Smith and Jeff Van Drew, both Republicans, have also applauded the decision and used it as an opportunity to criticize the Governor’s clean energy plans.
As voters head to the ballot boxes, the future of offshore wind in New Jersey hangs in the balance. If Democrats are able to retain their majority, they may push forward with new plans to revive the industry. However, if Republicans are able to gain seats, it could signal a shift away from offshore wind and towards other forms of energy.
Regardless of the outcome, the cancellation of Orsted’s projects serves as a reminder of the challenges facing the offshore wind industry and the need for careful planning and negotiation to ensure the success of future projects.
As the state looks towards a clean energy future, it is crucial that all stakeholders work together to overcome these challenges and find sustainable solutions for New Jersey’s energy needs.
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