By Exit Desk
New Jersey once positioned offshore wind as the centerpiece of its clean-energy future, with more than 7 gigawatts of projects awarded and major economic promises tied to jobs, manufacturing and the state-funded Wind Port in Salem County. But by late 2025, not a single turbine has been built off the coast. A combination of canceled projects, economic pressure, and federal permitting freezes has pushed the effort into a holding pattern. The state is still preparing for long-term offshore wind development, but momentum has slowed significantly.
The state’s early plans were ambitious. New Jersey awarded contracts for Ocean Wind 1 and 2, Atlantic Shores’ combined 2.8-GW buildout, and Round 3 projects including Leading Light Wind and Attentive Energy 2. These awards totaled more than 7 GW, with construction originally targeted between 2025 and 2030. Several of those projects have since been terminated or paused. Ørsted canceled Ocean Wind 1 and 2 in 2023 due to supply-chain issues and rising costs. Atlantic Shores lost key federal permits in 2025, saw a major partner exit, and had its OREC award revoked by the Board of Public Utilities. Leading Light Wind withdrew in November 2025, citing economic and regulatory conditions.
Federal policy has also affected timelines. Executive actions in early 2025 halted approvals for new offshore wind permits and paused ongoing federal reviews. This freeze included transmission projects that would carry offshore wind power to the grid. As of late 2025, New Jersey has no active offshore wind projects cleared to begin construction.
Economic conditions continue to play a role. Inflation, supply-chain limitations, and higher interest rates have increased the cost of offshore wind development across the U.S. Some proposed projects are no longer financially viable under previously awarded contract terms, prompting withdrawals or attempts to renegotiate pricing structures. The state’s OREC model remains in place, but developers have faced difficulty finalizing contracts without federal support.
Opposition from coastal groups remains active. Concerns include the impact of offshore wind surveys on marine life, potential visibility from beaches, and cost impacts on ratepayers. Agencies including NOAA have reported no evidence linking offshore wind activity to whale mortality, with most strandings tied to vessel strikes or environmental factors. Visual impacts vary based on distance from shore, and rate impacts depend on long-term project approvals. These issues continue to shape local debate.
With construction stalled, the state has shifted its focus to workforce development, supply-chain investments, and maintaining readiness for future solicitations. The Wind Port project remains under development, and state agencies continue funding training programs and applied research. A future solicitation is planned for 2026, depending on market conditions and federal policy changes. Incoming governor Mikie Sherrill has expressed support for renewable energy while prioritizing rate stability.
For now, offshore wind in New Jersey remains a long-term plan rather than an active buildout. The state still views offshore wind as part of its future energy mix, but timelines depend on economic trends, federal permitting, and renewed developer participation in the next round of bids.
📅 Posted: December 3, 2025
