Atlantic City wind farm, once opposed, has saved $8.8 million in the last two decades

Blustery winter winds propelled the giant blades of five turbines at the Jersey-Atlantic Wind Farm on a recent day. Set on a back bay island, they were once contested over fears of noise, aesthetics, and worries of threats to Shore birds.

But two decades later, they’ve emerged as a spinning landmark to Atlantic City.

The 380-foot turbines silently rotate in clear view of motorists streaming to casinos. Some visitors have even requested rooms facing the structures, which are taller than the Statue of Liberty.

The embrace of the land-based wind farm contrasts sharply with the more recently divisive battle over offshore wind projects, an effort stalled by economics and the Trump administration.

Together, the Jersey-Atlantic Wind Farm turbines produce 63% of the energy for the Atlantic County Utilities Authority’s (ACUA) wastewater treatment plant that serves 14 municipalities. Officials calculate the farm has saved ratepayers $8.8 million since its grand opening on Dec. 12, 2005.

It is one of only two wind farms operating in New Jersey. The other is a much smaller farm in Bayonne.

“This was a total home run for everybody involved,” said Richard Dovey, president of the ACUA at the time it was built. “It’s been nothing but successful, environmentally and economically … [an] inspiration for many other entities, whether they’re public or private.”

The idea for a wind farm near Atlantic City came from a worker in the energy industry that passed the idea onto Dovey in the early 2000s. With Dovey’s help, it picked up support in former Gov. Jim McGreevey’s administration.

Dovey believed in renewable energy and thought it could power the ACUAs regional wastewater treatment plant on City Island in Absecon Bay, about two miles from the Atlantic Ocean. He thought Atlantic City’s ample breezes from land and sea would make an ideal location.

Community Energy Inc., a suburban Philadelphia-based developer of wind power, played a significant role in the project’s development and received a $1.7 million grant from the New Jersey Board of Public Utilities.

The New Jersey Sierra Club backed the project.

Construction began in mid-2005. The project cost $12 million and included driving pilings into the wetland areas and installing intricate concrete bases to support the turbines made by GE.

Currently, the wind farm is owned by Texas-based Leeward Energy. Leeward rents the land for the wind farm from ACUA.

In return, ACUA has a 20-year agreement to purchase the power produced by the turbines from Leeward for 7.9 cents a kilowatt-hour, which was cheap even then. Now, the rate is about half the market rate for energy.

It has helped ACUA keep some of the lowest sewer rates in the state.

However, that agreement is expiring, and the two sides are in negotiations to renew a contract, which could change the rate the ACUA pays for its wind power.

Initially, the wind farm faced resistance. Residents in the neighboring Venice Park section of Atlantic City were concerned primarily about potential noise from the turbines.

To allay their fears, Dovey organized a bus trip that took residents to visit a wind farm in Somerset County in Pennsylvania.

“Their major concern was noise,” Dovey, now 73, recalls. “We drove literally underneath the turbine. One neighborhood leader took one step out and said my air conditioner is louder than this; let’s go home. They thought the turbines were beautiful, even inspiring.”

In addition, there were apprehensions regarding the impact of the turbines on birds and marine life. The wind farm is just below the Edwin B. Forsythe National Wildlife Refuge, a 48,000-acre area of coastal habitat. NJ Audubon agreed to monitor the impact on the bird population as part of their support for the project.

According to the ACUA, a three-year study by NJ Audubon found “a small number of bird deaths which could be attributed to collisions with turbines.” It found more fatalities were caused by raccoons, feral cats, and collisions with wires and trucks.

People were also concerned about the visual impact, fearing they might spoil scenic views, affect property taxes, and hurt tourism. However, the wind farm has since become an iconic part of the landscape.

The concerns were part of a broader debate at the time regarding the emerging push among some state leaders for offshore wind farms, which had faced a moratorium by the state.

Even though the moratorium was lifted,and Gov. Phil Murphy backed a large offshore wind program that would have powered millions of homes, the debate continued. This year, President Donald Trump issued an executive order to stop offshore wind, making any project in the near future unlikely.

However, a federal judge recently ruled that Trump exceeded his authority with the order, a ruling the administration is likely to challenge. It’s unclear whether renewable energy companies still have the political will for a renewed push to build an offshore wind farm off the coast of New Jersey.

The Jersey-Atlantic Wind Farm is an example of how wind power can work, even if on a smaller scale. The farm is ideally located because of consistent land and ocean breezes. If winds exceed 45 mph, the turbines, each equipped with a weather station, switch off to protect the machinery. That happens only a few times a year.

Matt DeNafo, current president of the ACUA, says the wind farm has been a “huge project” for his organization. The ACUA is currently operating a pilot project that would store energy captured by the turbines in a battery. A solar array on site also provides about 3% of the facility’s power.

DeNafo said the arrangement with Leeward brought significant economic stability through the 20-year fixed rate. He said it allows the agency to offer the lowest wastewater rates in the region.

At the same time, the ACUA does not have to pay for maintenance of the turbines, while still collecting rent from Leeward.

“It’s really been a great partnership for us. It’s been a beacon for our organization,” DeNafo said. One casino was “getting a lot of requests for windmill view rooms because it’s got a calming effect.”

Harrah’s, MGM, and Borgata casinos all are in view of the windmills.

Amy Menzel, a spokesperson for the ACUA, said summer tours of the wind farm and treatment plant are popular.

“We give open house tours in the summer on Wednesdays,” Menzel said. “People can just drop in. We have a lot of curious people who are visiting the shore. The tours are really a mix of locals and out-of-town visitors, people who just want to get a little closer and learn more.”