New Jersey BPU approves two offshore wind transmission projects
The New Jersey Board of Public Utilities (NJBPU) tapped an offshore wind transmission project proposed as a joint venture by Mid-Atlantic Offshore Development (MAOD) and Jersey Central Power & Light Company for development.
The project – the Larrabee Tri-Collector Solution (LTCS) — is estimated to cost $504 million. In addition, the board awarded onshore grid upgrade projects to enable the capacity injection afforded by the LTCS. The upgrade awards went to Atlantic City Electric, BGE, LS Power, PECO, PPL, PSE&G, and Transource at an estimated cost of $568 million. The total for the two projects is $1.07 billion.
Together, these projects will establish the first coordinated solution for offshore wind transmission in the U.S. Further, this coordinated transmission solution will minimize cost and other impacts while supporting the continued expansion of offshore wind energy in the state. Officials estimate that they will save New Jersey ratepayers $900 million compared to the cost of transmission without utilizing this coordinated approach.
“New Jersey has been at the leading edge of offshore wind development since Governor 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,” NJBPU President Joseph Fiordaliso said. “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.”
The board’s decision was informed by data, analysis, and expertise from New Jersey’s grid operator, PJM Interconnection. The approved applicants were part of a competitive solicitation process aimed at exploring coordinated offshore wind transmission solutions. The process identified the most cost-effective, environmentally sensitive, and ready-to-build means of reliably bringing offshore wind energy to shore. A total of 80 proposals were received from 13 developers.
The board also directed its staff to begin steps to support a future solicitation, to enable the transmission of New Jersey’s new and expanded goal of 11,000 MW of OSW energy by 2040, and to continue its engagement with other states, regional grid operators, and other stakeholders regarding a regional approach to offshore wind transmission. The board anticipates issuing the third solicitation in the first quarter of 2023. The board and its staff will continue to work with PJM on these projects.
