Phil Murphy’s offshore wind dreams run out of air after latest cancellation.
TRENTON, NJ – The developers behind New Jersey’s largest proposed offshore wind project have officially pulled the plug, telling the state’s Board of Public Utilities they can’t move forward under existing contract terms.
In a letter filed with the Board, Invenergy Wind Offshore LLC said it will not proceed with the 2,400-megawatt Leading Light Wind project due to mounting economic and regulatory hurdles.
The decision effectively ends one of New Jersey’s most ambitious renewable energy efforts, halting years of planning and millions in early-stage investment.
Key Points
- Invenergy notified the New Jersey Board of Public Utilities it cannot advance the 2.4 GW Leading Light Wind project.
- The company cited supply chain problems, vendor issues, and changing regulations as key factors.
- The developer may reapply in future state solicitations if conditions improve.
Economic strain and shifting policy landscape
The company said offshore wind industry conditions have deteriorated sharply since the project was approved in January, pointing to inflation, global supply disruptions, and shifting federal rules as factors that made financing unworkable. Invenergy had previously secured approval for Offshore Wind Renewable Energy Certificates (ORECs), which would have guaranteed revenue from the project once operational, but compliance filings and construction commitments stalled under repeated requests for delays.
After securing a stay from the Board in September, Invenergy repeatedly sought extensions through spring, citing unresolved challenges. As of November, no final action had been taken by regulators, and the company confirmed it will not file the binding compliance documents required to lock in the award.
Project once seen as cornerstone of state’s clean energy goals
The Leading Light Wind project, co-developed with energyRE, was expected to be built roughly 40 miles off the New Jersey coast, capable of powering more than a million homes. The Board had designated the 2.4 GW proposal as a qualified offshore wind project under the state’s third solicitation round, positioning it as a critical part of New Jersey’s target to generate 11 GW of offshore wind energy by 2040.
Invenergy’s withdrawal represents another blow to U.S. offshore wind development following several high-profile setbacks nationwide. Developers have faced rising costs for turbines, permitting delays, and uncertain federal tax guidance that has forced multiple companies to reassess their pipelines.
Offshore wind industry faces mounting retreat
Earlier this year, JERA Nex BP, a joint venture between JERA and Equinor BP, announced it would wind down investment in its Beacon Wind project, citing similar economic pressures and a lack of viable financial pathways. Analysts say these decisions underscore the headwinds facing offshore wind as states and developers navigate the gap between policy ambition and market reality.
Despite the setback, Invenergy said it remains committed to exploring offshore wind in New Jersey and could participate in future solicitations if conditions stabilize. The company thanked the state and regulators for their “efforts to bring the project to fruition” and said it continues to see long-term potential in the region’s renewable energy sector.