Ørsted has agreed to sell 25% of its 1148MW Ocean Wind 2 Ocean Wind 2 (1148MW) Offshoreoff Atlantic City, New Jersey, USA, North America Click to see full details farm off the coast of New Jersey to local utility Public Service Enterprise Group (PSEG).
New Jersey’s PSEG will contribute both a conventional and tax equity investment in the Ocean Wind project.
Neither party has disclosed the value of the transaction.
The deal is due to close in the first half of 2021, subject to approval by the New Jersey Board of Public Utilities and other customary closing conditions.
Ocean Wind could provide first power in late 2024, subject to federal permitting timelines, other development and construction activities and final investment decisions by the two developers.
The project will feature GE’s 12MW Haliade-X turbines and receive a first-year Offshore Wind Renewable Energy Certificate (OREC) price of $98.10/MWh, with an annual 2% increase during the 20-year term of the contract.
Ørsted and PSEG are also working together on the Garden State offshore energy leasing area off New Jersey.