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The New Jersey Board of Public Utilities (NJBPU) announced April 26 it will once again use the State Agreement Approach (SAA) as it solicits the next round of offshore wind transmission projects.

NJBPU formally requested that PJM Interconnection (PJM) – New Jersey’s regional grid operator – include the state’s current public policy of 11 gigawatts of offshore wind by 2040 into its Regional Transmission Expansion Planning (RTEP) using its SAA.

This reflects accelerated, loftier offshore wind goals recently outlined by Gov. Phil Murphy, on which NJBIZ has reported. It will be the second use of this approach.

In 2020, NJBPU formally requested the inclusion of New Jersey’s then offshore wind goal of 7.5 GW by 2035 into PJM’s transmission planning process, which resulted in a competitive solicitation process.

Last October, the NJBPU announced the selection of the Larrabee Tri-Collector Solution (LTCS), proposed by Mid-Atlantic Offshore Development (MAOD) and Jersey Central Power & Light Co. The board also awarded several other onshore grid update projects to enable the capacity injection afforded by the Larrabee Tri-Collector Solution to Atlantic City Electric, BGE, LS Power, PECO, PPL, PSE&G and Transource.

NJBPU says that using the SAA process will save ratepayers hundreds of millions of dollars and provide other ancillary benefits.

Creating pathways

This second SAA is expected to solicit proposals to inject the additional 3.5 GW needed to reach the new 11-GW goal at the Deans 500-kilovolt substation. NJBPU adds that transmission developers will be allowed to propose cost-effective alternative points of interconnection that may still meet the state’s immediate policy goals.

The Deans 500-kV substation was identified for SAA 2.0 for several reasons, including:

• Its location near high electric load centers;
• Accessibility to the Bureau of Ocean Energy Management (BOEM) offshore wind lease areas that are likely to service New Jersey; and
• For previously being identified by PJM as having available capability to accommodate the desired injection.

“Today’s action is extremely important for the future of our offshore wind program,” said NJBPU President Joseph Fiordaliso in a press release. “As we look to achieve Gov. Murphy’s new, increased goal of 11 GW of offshore wind capacity by 2040, we must create additional pathways for wind energy to be brought on shore into the PJM grid.”

The NJBPU said that this solicitation will have no impact on the offshore wind projects that have already been awarded, or that will be awarded up to the original stated goal of 7.5 GW.

As part of Wednesday’s action, the NJBPU directed staff to prepare an SAA 2.0 Solicitation Guidance Document (SAA 2.0 SGD) that will include details regarding the solicitation components and the proposal evaluation process, and to issue a draft SAA 2.0 SGD for public comment to inform the development of the final SAA 2.0 solicitation.

NJBPU plans to immediately work with PJM to begin this SAA 2.0 process.

“New Jersey has been a pioneer in developing infrastructure needed to achieve its ambitious offshore wind policies,” said Manu Asthana, PJM president and CEO. “NJBPU recognized early on the value of PJM’s independent, competitive and proven transmission planning process, and we look forward to continuing to help New Jersey achieve its offshore goals reliably and as cost-effectively as possible.”

The announcement was applauded by Anbaric Development Partners, a leading developer of electric transmission projects.

“New Jersey has again established itself as a leader in offshore wind development,” said Janice Fuller, president, Mid-Atlantic, in a statement. “Today’s board action sets the state on a course to reach its aggressive clean energy goals while also providing for significant ratepayer savings and reduced environmental impacts, all while creating a robust, resilient, and future-focused transmission system. Anbaric looks forward to the opportunity to participate in this SAA process.”

The NJBPU is also accelerating engagement with other states, regional grid operators, federal regulators and stakeholders about a regional offshore wind transmission solicitation.