The New Jersey Board of Public Utilities (NJBPU) has vacated the offshore renewable energy certificate (OREC) order issued in 2021, which approved the 1,509.6 MW Atlantic Shores Project 1 as a Qualified Offshore Wind Project (QOWP), as per the request recently filed by the developer.
Atlantic Shores Offshore Wind, a joint venture between EDF Renewables and Shell, which Shell paused its involvement in at the beginning of 2025, submitted a request to terminate its OREC contract in June, citing the recent withdrawal of the project’s Air Permit for further review as one of the key reasons.
The developer, which planned to make a final investment decision on the project this year, noted that it was uncertain when the Air Permit (legally required for the project to proceed to construction) could be reinstated, as the Presidential Memorandum, under which the permit was remanded for further review, does not clearly define timeframe(s) for the the additional assessments it seeks.
In its petition to vacate the OREC order, the developer stated that, due to this uncertainty, it had paused its construction schedule, including cancelling its interconnection service agreement with PJM Interconnection and pausing transmission upgrades.
Atlantic Shores was issued an OREC order for the Atlantic Shores Project 1 in the second offshore wind solicitation in New Jersey, launched in 2020 and completed with OREC agreements signed in 2021.
The OREC contract was awarded for the first Atlantic Shores offshore wind farm , with the stipulation that the first phase of the offshore wind farm (761.6 MW) would start producing electricity by September 2027 and the remaining 748 MW would reach commercial operation by April 2028.
In 2024, Atlantic Shores rebid the project in New Jersey’s fourth solicitation to secure better terms, but the NJBPU cancelled the solicitation process in February 2025, also amid the uncertainty created in the US offshore wind market following decisions on the federal level.
EDF Renewables, now leading the Atlantic Shores Offshore Wind developments, filed the request to vacate the OREC order in June, saying the project was no longer viable under the terms of the order.
“Despite Atlantic Shores’s substantial efforts and investments to advance the Project and support the development of the OSW industry in New Jersey, external factors ultimately prevent Atlantic Shores from completing the Project at this time. Global inflation and increased demand for OSW materials have made the Project much more costly than it was when the OREC Order was first approved in 2021. Additionally, Project construction cannot move forward without the Air Permit, which has been remanded by the [EPA Environmental Appeals Board]. The Wind Memorandum has also introduced significant uncertainty about whether or when the Air Permit may be reinstated and what other actions the federal government may take with respect to the Project” , the New Jersey Board of Public Utilities says in its order vacating the previously issued OREC order.
“The Board finds that, due to the significant federal uncertainty in the offshore wind market, and Atlantic Shores inability to complete Project under the terms of the OREC Order, it is in the public interest to vacate the OREC Order and the Project’s status as a QOWP. The Board also finds that Atlantic Shores is in substantial compliance with the OREC Order and has no outstanding obligations to the Board requiring resolution prior to vacation.”