NJBPU selects project to help bring wind power onshore

New Jersey’s burgeoning offshore wind sector took a gigantic step forward toward becoming reality Oct. 26 as the New Jersey Board of Public Utilities (NJBPU) selected the first project to establish a coordinated solution for offshore wind transmission in the U.S.

The Larrabee Tri-Collector Solution (LTCS) offshore wind transmission project was chosen, a joint proposal from Mid-Atlantic Offshore Development (MAOD) and Jersey Central Power & Light Co. (JCP&L). MAOD is a joint venture of EDF Renewables-North America and Shell New Energies U.S.

The project marks the first-ever use of the State Agreement Approach (SAA) between the NJBPU and PJM Interconnection, New Jersey’s grid operator.

The board also awarded onshore grid upgrade projects to enable the capacity injection afforded by the LCTS to Atlantic City Electric, BGE, LS Power, PECO, PPL, PSE&G, and Transource.

NJBPU determined that the selected projects had the most potential to meet the state’s ambitious offshore wind goals.

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Last month, Gov. Phil Murphy signed an executive order that increases New Jersey’s offshore wind goal by nearly 50% by 2040. Click here to read the details.

“New Jersey has been at the leading edge of offshore wind development since Gov. [Phil] Murphy took office, and today’s action is further evidence that we are committed to developing offshore wind and the necessary transmission to shore in the most cost-effective, reliable, and responsible manner possible,” said NJBPU President Joseph Fiordaliso.

The MAOD-JCP&L proposal is estimated to cost $504 million, while the necessary onshore grid upgrade projects are estimated to cost $568 million, for a total of $1.07 billion for the full LTCS.

The NJBPU says the selected projects will save New Jersey ratepayers $900 million by using the SAA while marking a huge step forward in the process of building out the infrastructure needed to hook renewable energy into the grid.

The announcement was applauded by environmental groups around the state.

“Selection of onshore transmission projects is a critical step in making offshore wind energy a reality,” said Denise Brush, issue coordinator for offshore wind with the New Jersey Sierra Club. “Soon New Jerseyans will be able to benefit from the promise of offshore wind in mitigating the negative effects of fossil fuel projects on climate change and air pollution.”

“It’s a big day for offshore wind goals and the good local jobs it will create. The BPU is moving forward with a critical part of New Jersey’s growing offshore wind industry, the infrastructure needed to bring clean, renewable electricity onshore,” said Ed Potosnak, executive director of the New Jersey League of Conservation Voters. “Today’s decision helps cement New Jersey as a leader in offshore wind and is designed to minimize impact to the environment and consumers.”

“I would like to thank Board staff for a very thorough job of evaluating the many applications we received for this first in the nation coordinated offshore wind transmission solicitation process,” said Fiordaliso.