Invenergy and EnergyRe have informed U.S. regulators they will not proceed with the 2,400-MW Leading Light offshore wind project, saying current market conditions prevent the venture from moving forward under its existing offshore renewable energy certificate (OREC) award.
In a filing to the New Jersey Board of Public Utilities, the developers said they were unable to progress the scheme due to multiple industry challenges. “Like many other industry participants, the Company has faced a series of obstacles in the development of the LLW Project including supply chain, equipment and vendor challenges as well as changing regulatory requirements, to name but a few of the issues the Company has confronted,” their attorneys wrote.
The companies said they had committed significant time and financial resources to the project and remain convinced of offshore wind’s potential value to the state. “The Company has invested considerable time and financial resources in the development of the LLW Project and remains firmly of the view that the LLW Project, and offshore wind energy development, can provide significant benefits to New Jersey and its residents,” they said.
However, they added that they do not see a viable route forward under the existing award. “The Company regrets this decision but does not see a path forward for the LLW Project on this OREC award and looks to the future for possible solicitations,” the filing said.
Leading Light had been one of several large-scale offshore wind projects proposed along the U.S. East Coast at a time when developers across the sector are contending with rising costs, supply chain bottlenecks and shifting regulatory frameworks.
