NEW JERSEY – Senator Michael Testa recently addressed the withdrawal of Ørsted, a Danish wind energy company, from the Ocean Wind 1 & 2 offshore wind farm projects in New Jersey. Testa’s comments highlighted the complexities and controversies surrounding the state’s investment in green energy.
Testa criticized the allocation of state funds, including a $1 billion investment in Ørsted’s projects, as a burden on taxpayers and ratepayers. He described the investment as “a drop in the ocean,” underscoring his view that the funds were insufficient to achieve the intended goals. Additionally, Testa expressed concern about the establishment of a $5 million wind institute, which he perceives as a “propaganda arm” of the wind industry.
Tests explained that the $1 billion earmarked to subsidize Orsted was supposed to be used to offset rising energy costs due to clean energy and give it back to the ratepayers.
Governor Phil Murphy disputed that, saying, “Not a single penny was given to Orsted.:”
Because the project was canceled for now, but where is that $1 billion going now?
The senator’s remarks followed the June 2023 bipartisan decision to provide additional funding to Ørsted. This decision, according to Testa, contradicted the wishes of over 70% of New Jerseyans and was primarily aimed at making Ørsted’s projects more profitable.
Governor Murphy signed the law for the additional funding, which Testa criticized as a misuse of ratepayer money intended to offset the increased costs of green energy. Instead, the funds were directed towards Ørsted’s projects.
Ørsted’s recent decision to abandon the Ocean Wind 1 & 2 projects has been seen as a victory by some, but Testa cautioned that this is only the beginning of a longer struggle. He compared the situation to winning the first game in a seven-game series, emphasizing that it is not the end of the broader challenges in the state’s energy policy.
While the battle against Ocean Wind 1 & 2 may have been won by the opponents of offshore windfarms, Testa says a long war lies ahead for New Jersey.