N.J. places moratorium on offshore wind

New Jersey acting Gov. Richard Codey, D, has ordered a 15-month freeze on offshore wind projects, while a "blue ribbon" panel studies the issue. Codey issued an Executive Order on Dec. 23, stopping projects from obtaining permits or financing from the state.

There are no offshore wind projects in the U.S., but one company has proposed a 350-MW project off the coast of New Jersey, and another is interested. The prospect has drawn concerns from some environmentalists, who fear the impact on wildlife, and from some municipal officials worried about tourism in their beach towns. Tourism is one of the state's biggest industries.

Codey's executive order acknowledges that wind power could help reduce air pollution and relieve the state's reliance on fossil fuels. It also notes that New Jersey has a renewable portfolio standard (RPS), and "is committed to the use and production of electricity through renewable resources." But it adds that the "marine and coastal environment is an important natural resource [and] … an important economic and recreational resource," which must be protected by the state. New Jersey has Federal Consistency review authority under the Coastal Zone Management Act, the order notes.

The panel will weigh the costs and benefits of offshore wind, both economic and environmental. If such projects are found to be in the public interest, the state must develop policies governing their development. The panel will hold public hearings and report to the governor in 15 months.

The panel will consist of nine members, including the commissioner of the N.J. Dept. of Environmental Protection, the president of the Board of Public Utilities, and the CEO of the Commerce and Economic Growth Commission. The other six members have been appointed by the governor, and they include environmental, tourism, local government and academic interests.

Winergy, based in Shirley, N.J., has proposed a 350-MW project, covering 11 square miles, off Asbury Park., N.J. Winergy President Dennis Quaranta said any project started now would not be permitted in the 15 months allowed for the moratorium. He added that the project's turbines would be installed five to eight miles offshore, and hardly visible. Quaranta also said that offshore wind has strong support in the state, among environmental groups and communities, and will be important in meeting N.J.'s RPS goals.

Atlantic Renewable Energy, Richmond, Va., has mentioned an interest in offshore wind, but has not released details of a specific project.

The American Wind Energy Assn., Washington, had urged Codey not to impose a moratorium, arguing that "an extensive regulatory framework already exists at both the state and federal levels that requires a rigorous environmental review, based on a clearly defined public review process." Similar concerns about offshore wind have been raised in Massachusetts, where Cape Wind wants to build a 420-MW project near Cape Cod, but faces local opposition.

Another major offshore wind project has been planned in New York by the Long Island Power Authority, which selected FPL energy to develop a 140-MW wind complex off the island's south shore.

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.