New Jersey’s offshore wind ambitions suffered another major setback as Invenergy confirmed it is terminating its 2.4-gigawatt Leading Light Wind project, one of the largest planned offshore wind installations on the East Coast. The company disclosed the decision in a Nov. 7 filing to the New Jersey Board of Public Utilities (BPU), signaling the growing strain on the offshore wind industry.
Invenergy’s attorney stated that the developer “has determined it cannot move forward with the project under the terms and conditions set out” when it was awarded offshore wind renewable energy certificates (ORECs) in early 2024. The company added that it “regrets this decision … and looks to the future for possible solicitations.”
In the filing, Invenergy emphasized the broader difficulties affecting the offshore wind sector. “The [BPU] is well aware that the offshore wind industry has experienced economic and regulatory conditions that have made the development of new offshore wind energy projects extremely difficult,” the company wrote.
This echoes previous concerns raised in May, when Invenergy acknowledged the headwinds facing project development, noting that “given ongoing market and policy uncertainty, Leading Light Wind will continue to focus on meeting its lease obligations.” The new filing makes clear that the developer no longer sees a viable path to do so.
The company cited a combination of challenges that have become increasingly familiar across the U.S. offshore wind landscape:
Invenergy and its project co-sponsor, energyRe, requested multiple extensions from the BPU after failing to meet required deadlines. The BPU granted a stay last September, and that pause was extended three additional times as the developers sought to resolve procurement and financial issues. Ultimately, they determined the project was no longer feasible.
Leading Light Wind was expected to be operational in 2030, contributing significantly to the state’s offshore wind generation portfolio and supporting local economic development through job creation, port activity, and supply chain investment. Instead, the project now joins a growing list of U.S. offshore wind initiatives paused, scaled back, or canceled due to volatile market conditions.
Invenergy reiterated its belief in the long-term importance of offshore wind despite the setback. “The Company has invested considerable time and financial resources in the development of [Leading Light Wind] and remains firmly of the view that [Leading Light Wind], and offshore wind energy development, can provide significant benefits to New Jersey and its residents,” the filing said.
The Chicago-based developer describes itself as North America’s largest privately held clean energy developer, with more than 36 GW of completed or active renewable energy projects. Still, the termination of Leading Light Wind underscores the mounting obstacles for companies pursuing large-scale offshore projects in the U.S.
Industry watchers now await how the BPU and New Jersey policymakers respond, as the cancellation could influence future solicitations, procurement strategies, and the state’s broader offshore wind roadmap.
Originally reported by Diana DiGangi in Construction Dive.
