Update: Offshore Wind Farm Momentum Slows

Update Offshore Wind Farm Momentum SlowsLast month, we discussed the Commencement of the First Offshore Wind Farm off of the coast of Rhode Island. While other states are taking full advantage of their locations in order to boost renewable energy, a combination of factors has reduced New Jersey’s momentum to a standstill. While construction has halted, New Jersey Construction Liability will continue to be heightened once the plans are sorted and put back into action.

The acres of wind turbines that would create enough clean renewable energy to supply the surrounding coastal cities has been stalled as the Board of Public Utilities has rejected yet another proposal by Fisherman’s Energy. Another issue lies in the fact that five years later, the board has failed to find a funding source that would guarantee a buyer for the produced energy, says NorthJersey.com.

Experts are concerned that New Jersey is missing out on an opportunity to take advantage of a renewable energy movement. However, politics may be partially to blame for the lag. New jersey Governor Chris Christie’s political ambitions are said to be overtaking any efforts toward renewable energy as fossil fuels are preferred by his financial donors, according to the article.

While the idea was first launched in August of 2010, new stipulations are being presented. The Offshore Wind Economic Development Act would require the companies that sell electricity in the state to obtain a portion of that electricity form offshore wind farms- guaranteeing the farms a buyer for their energy, according to NorthJersey. As the development is still progressing, the perceived economic scale to accommodate the industry is fluctuating.

The other component that is stalling the development is a result of the BPU wanting to ensure the “net benefit” of ratepayers for this renewable service would be less expensive than residents’ current options. As there has been constant back and forth negotiations in court over the projected cost of the energy produced, the project has come to a halt.

The project is estimated to power more than 10,000 homes on the New Jersey coast upon completion. Although politics and court rulings are contributing to a delayed start date, the overall motivation and intention remains sturdy for New Jersey. At Tri-State Insurance Agency, we are dedicated to protecting construction firms like yours. For more information on the coverages necessary to properly safeguard your assets, contact us today at (888) 990-0526.