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New Jersey BPU aligns offshore wind plans

By: Tom Russell 19/11/2020 NJBPU

General Windfarms

The New Jersey Board of Public Utilities (NJBPU) has positioned New Jersey to be the first state to fully align its offshore wind transmission goals with its regional grid operator’s planning process. In furtherance of these objectives, set out by Governor Phil Murphy’s goal of 7,500 MW of offshore wind energy by 2035, and by the Legislature, the Board formally requested the inclusion of this state public policy into the transmission planning process of PJM Interconnection, LLC (PJM) through a competitive solicitation process in what is known as the State Agreement Approach.

NJBPU is requesting that PJM integrate the State’s offshore wind transmission policy goals into the grid operator’s transmission planning process through the State Agreement Approach established by the Federal Energy Regulatory Commission’s (FERC) Order No. 1000. This action authorises PJM to solicit potential offshore wind transmission solutions from qualified developers on behalf of NJBPU, making New Jersey the first state to engage in a competitive solicitation process managed by PJM for such critical planning.

By making this formal request, NJBPU can utilise the State Agreement Approach to explore options for an optimal long-term solution for offshore wind transmission that otherwise may not have been available at this stage of development. Through the solicitation process, NJBPU will examine details on a wide array of ready-to-build transmission options, including key factors such as cost, siting, environmental impacts, and the timeframe for construction.

The process will also allow NJBPU to determine how a coordinated approach can lead to more cost-effective, efficient transmission solutions that minimize the environmental impacts of bringing wind energy ashore. There are no financial or ratepayer obligations with today’s announcement, which goes into effect after the State’s second offshore wind solicitation. Additionally, the competitive solicitation process contains extensive consumer protections, including the ability to control cost and timing implications by incorporating transmission upgrades in a phased manner.

With its decision, NJBPU directed Staff to work with PJM to seek potential solutions for three interrelated components of an open access offshore wind transmission facility. This includes onshore upgrades, beach crossings with potential offshore “collector” platforms, which collect energy from multiple wind farms, and an ocean transmission “backbone” to connect multiple collector platforms or lease areas.

NJBPU will assess whether proposals for any of these components can meet the State’s offshore wind policy goals in an economically efficient, environmentally sensitive, and timely manner.

NJBPU intends to work with PJM to open the solicitation in 2021 and evaluate competitive project proposals in concert with the grid operator, including any cost considerations. At the end of the process, NJBPU will decide whether to proceed with any combination of the proposed transmission projects, but reserves the right to terminate the process at any time without making a selection.

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New Jersey BPU aligns offshore wind plans

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