AP NEWS

PSEG eyes 25% stake in Orsted wind energy farm off NJ

October 30, 2019

ATLANTIC CITY, N.J. (AP) — A major New Jersey utility is eyeing a 25% stake in an offshore wind project being planned off the coast of Atlantic City.

Public Service Enterprise Group will begin negotiations with Orsted to acquire a quarter of Ocean Wind, an offshore wind energy project about 15 miles (25 kilometers) off the coast, according to an announcement from the companies late Tuesday.

The project would generate 1,100 megawatts of electricity, or enough to power about a half-million homes.

“Orsted’s experience in the offshore wind industry has taught us the importance of strong partnerships,” said Thomas Brostrom, president of Orsted North America and CEO of Orsted U.S. Offshore Wind. “Given PSEG’s track record for success and history providing energy solutions for communities across the Mid-Atlantic region, we are thrilled at the prospect of having them join the Ocean Wind project.”

Orsted already operates a windmill farm off Rhode Island’s Block Island and has leases for other projects off New Jersey and Massachusetts.

PSEG serves 2.3 million New Jersey electricity customers.

Financing of the deal and the cost at which it will produce electricity are being closely watched as the nation tries to harness its vast wind energy potential.

Orsted hopes to have the project up and running in 2024.

If negotiations on a joint venture succeed, the alliance would still be subject to approval by state utility regulators.