The New Jersey Board of Public Utilities (BPU) announced on November 18, 2020 that it has submitted a solicitation to develop offshore wind transmission solutions in 2021 with PJM Interconnection, which makes New Jersey the first state to engage in this type of transmission planning.[1][2] The State Agreement Approach (SAA), a new type of solicitation established by FERC Order 1000, is intended to explore new frameworks to advance offshore wind energy. The SAA, which was unanimously approved by the BPU, requests PJM to incorporate New Jersey's offshore wind public policy objectives into its transmission planning process starting in the first quarter of 2021 and authorizes PJM to solicit potential offshore wind transmission solutions from developers on behalf of BPU. Under this solicitation process, the BPU will examine details on ready-to-build transmission options, including key considerations such as cost, siting, environmental impacts, and the timeframe for construction. The results of the 2021 solicitation will be revealed by PJM later in 2021 in collaboration with New Jersey.
New Jersey’s goal of generating 7.5 GW of power from offshore turbines by 2035 is second only to New York and will rapidly expand the state’s renewable energy. During the state’s first two offshore wind solicitations, BPU staff recommended a coordinated approach to generation and transmission. However, with the resource set to expand substantially, the BPU recognizes that there needs to be an integrated transmission plan early in the planning process so that there is no double building or unnecessary environmental disruption.
[1] https://www.nj.gov/bpu/pdf/boardorders/2020/20201118/8D%20-%20ORDER%20Offshore%20Wind%20Transmission.pdf
[2] https://www.bpu.state.nj.us/bpu/newsroom/2020/approved/20201118a.html