New Jersey’s Energy Turbulence
In one of his classic ballads, Bruce Springsteen reflects on the sun “rising over the refinery towers” in New Jersey. If Governor Phil Murphy had his ideal vision, however, those lyrics would need a tweak to celebrate towering wind turbines instead.
The governor’s strong focus on wind energy is making this year’s gubernatorial contest quite competitive. Republican Jack Ciatarelli is seizing the opportunity to challenge Murphy’s potential Democratic successor, Mikie Sherrill, in a closely followed year-end election.
Governor Murphy introduced a European-style energy strategy to New Jersey, but it hasn’t delivered the expected results. In fact, it seems to have delivered disappointment both locally and in Germany, where Murphy served as ambassador prior to his governorship.
His plan aimed at phasing out fossil fuels and nuclear energy to rely more on wind power. While it sounds promising, it turned out to be quite an optimistic endeavor. The wind didn’t cooperate, and nuclear reactors closed down.
Basic economics suggests that if supply decreases while demand remains steady or increases, prices will inevitably climb. This lesson, unfortunately, is hitting New Jersey residents hard as they feel the pinch in their wallets.
Since June, interest rates have surged by about 20%, compounding an already concerning situation where rates are among the highest in the nation. And, it seems we might not be done yet—further increases are anticipated next year.
When Murphy took office, there was a prevailing belief that wind energy was the future. New Jersey aimed to become known as the wind capital of the United States, with ambitions for offshore wind power to generate anywhere from 3,500 to, astonishingly, 11,000 megawatts. Higher numbers apparently reflect greater commitment to climate goals.
Initially, the state aimed for 100% of its energy to come from clean sources by 2050, later pushing that goal to 2035. Unfortunately, the wind didn’t yield as expected, leaving many issues unresolved.
The pandemic and federal regulatory adversities haven’t helped either, but arguably the core issue remains: wind power simply isn’t economically viable right now, even with generous subsidies and loans from state and federal programs.
Additionally, New Jersey has phased out coal, natural gas, and nuclear resources without a comprehensive replacement strategy. Murphy’s fight against the Penn East natural gas pipeline—it would link Luzerne County, Pennsylvania, to Mercer County, New Jersey—was staunch, taking the issue all the way to the Supreme Court. Ultimately, while the governor lost in court, the pipeline project was abandoned out of frustration.
This situation starkly contrasts with Pennsylvania, which also has a Democratic governor. While Pennsylvania retired more coal plants than New Jersey, it didn’t face issues of capacity thanks to its embrace of natural gas.
Murphy envisioned that by 2050, New Jersey’s energy mix would be composed of 34% wind, 23% solar, 16% nuclear, and 6% biogas—with an additional 21% sourced from out-of-state energy. Yet, after eight years of extensive clean energy efforts, New Jersey still relies on natural gas and nuclear power for about 90% of its energy needs.
Only around 8% comes from renewable sources, mainly solar. When Murphy assumed office, New Jersey was a modest net energy exporter; today, however, it has become a significant net energy importer. The state contributes less to the local power grid than it did when Murphy first took the helm.
Energy is a critical topic in this gubernatorial race, and for good reason. The repercussions of Murphy’s prescribed energy policies directly affect the everyday lives of New Jersey residents.
If Murphy were inclined toward self-reflection, he might reflect on a question posed by Springsteen long ago: “Are unfulfilled dreams a lie, or something worse?”
