The New Jersey Board of Public Utilities (NJBPU) has formally requested PJM Interconnection to include the state’s current policy of 11 GW of offshore wind by 2040 into PJM’s Regional Transmission Expansion Planning (RTEP) using the State Agreement Approach (SAA).
This will be New Jersey’s second use of the SAA to optimize the delivery of offshore wind generation into the state’s transmission system. It is expected that SAA 2.0 will solicit proposals to inject the additional 3.5 GW needed to reach the state’s new 11 GW goal at the Deans 500 kV substation.
However, 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 by PJM and board staff for SAA 2.0 because it is located near high electric load centers; is accessible to the Bureau of Ocean Energy Management (BOEM) offshore wind lease areas that are likely to service New Jersey; and was previously identified by PJM as having available capability to accommodate the desired injection.
“As we look to achieve Governor Phil 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 and into the PJM grid,” notes NJBPU President Joseph L. Fiordaliso.
“New Jersey has been a pioneer in developing infrastructure needed to achieve its ambitious offshore wind policies,” adds Manu Asthana, PJM’s 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.”
In 2020, the board formally requested the inclusion of New Jersey’s then offshore wind public policy goal of 7.5 GW by 2035 into PJM’s transmission planning process, which resulted in a competitive solicitation for a variety of transmission projects. That process resulted in the selection of the Larrabee Tri-Collector Solution proposed by Mid-Atlantic Offshore Development (MAOD) and Jersey Central Power & Light Co. MAOD is a joint venture of EDF Renewables North America and Shell New Energies U.S.
In addition, the board awarded several other onshore grid upgrade 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.
The exploration of coordinated transmission alternatives through SAA 2.0 will have no impact on the offshore wind projects that have already been awarded or that will be awarded, up to a total of 7.5 GW. Those projects will interconnect as directed.
NJBPU says it will immediately work with PJM to begin the SAA 2.0 process.
