Energy

PSEG to Sell Its 25% Equity Stake in Ocean Wind 1 to Ørsted

On Jan 18, 2023

Public Service Enterprise Group (PSEG) has agreed to sell its 25% equity stake in the Ocean Wind 1 offshore wind energy project to Ørsted, which will now have 100% ownership of the project. Ørsted, America’s largest offshore wind energy company, will proceed with development of the wind farm project situated 15 miles off the coast of Southern New Jersey, with PSEG supporting onshore infrastructure construction.

“As Ocean Wind 1 has evaluated the optimal way to move forward, it has become clear that it is best for the project for PSEG to step aside and allow for a better positioned tax investor to join the project so that it can proceed with an optimized tax structure. While this was a difficult decision, it was driven by the best interests of the project and New Jersey’s offshore wind goals. PSEG will continue to actively support offshore wind in New Jersey and the region,” PSEG’s Senior Vice President and Chief Commercial Officer Lathrop Craig said.

PSEG remains committed to Governor Murphy’s clean energy policies and President Biden’s goal of deploying 30 gigawatts of offshore wind by 2030. The company will continue to help the state and nation realize offshore wind’s tremendous potential through transmission solutions, support for the New Jersey Wind Port and PSE&G’s clean energy investments.

As Ocean Wind 1, which is expected to generate 1,100 MW of renewable energy (enough to power 500,000 homes per day) continues its planning and development, Ørsted will ensure the project delivers affordable energy to New Jersey, while providing economic opportunity across the state and region.

“PSEG has been a valuable partner as we have advanced Ocean Wind 1 to this point and as we’ve successfully advanced our offshore wind vision in the United States. With a well-established presence in the U.S., we’re confident in our ability to drive the project forward with commercial operations beginning as planned,” said David Hardy, group executive vice president and CEO Americas at Ørsted.

The transaction between Ørsted and PSEG is expected to close in the first half of 2023, pending the required closing conditions. The initial delivery of power from Ocean Wind 1 is scheduled for the end of 2024, and full commissioning is expected in 2025.

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