Government supporters of offshore wind energy projects in New Jersey and New York are facing opposition from shore towns concerned about the impact of wind turbines on tourism and local economies. The towns have expressed their concerns to state utility regulators, particularly regarding the projected cost and potential loss of jobs and economic activity associated with one proposed wind farm. The towns fear that the presence of windmills on the horizon could deter visitors and result in significant economic losses for the region.
In response to the concerns raised by the shore towns, the New Jersey Board of Public Utilities is considering allowing project owners to re-bid, which could potentially increase costs to ratepayers. The towns argue that these additional costs could amount to $10 billion, up from the initial estimate of $3.7 billion. Officials from Long Beach Township and other affected municipalities are advocating for offshore wind projects to be located further out to avoid negative impacts on local economies, residents, and businesses.
The Atlantic Shores wind farm, a joint venture between Shell New Energies US LLC and EDF-RE Offshore Development LLC, is one of three offshore wind projects currently pending in New Jersey. The project, which would consist of 157 turbines located 8.7 miles from shore, has been met with opposition from residents and officials concerned about its impact on tourism and recreational fisheries. Supporters of offshore wind development, including the New Jersey Offshore Wind Alliance, argue that operating wind farms in other locations have successfully coexisted with tourism and recreational activities.
In a related development, U.S. Interior Secretary Deb Haaland announced new regulations aimed at streamlining the approval processes for offshore wind projects and reducing industry costs. The Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement finalized these regulations, which are expected to save the industry $1.9 billion over the next 20 years. Additionally, New York Governor Kathy Hochul issued proposals to support the state’s offshore wind industry, following the collapse of three offshore wind projects due to financial disagreements between companies and regulators.
New York had provisionally approved the three projects in October 2023, but final agreements could not be reached. The state’s actions highlight the challenges facing the offshore wind industry in terms of financing and regulatory approvals. While offshore wind projects hold promise for clean energy generation and job creation, the concerns raised by shore towns underscore the need for careful planning and consideration of the potential impacts on local communities and economies. The ongoing debate between supporters and opponents of offshore wind development will likely continue as these projects move forward in New Jersey and New York.
