New Jersey BPU awards offshore wind transmission project to Jersey Central Power and Light
Jersey Central Power and Light (JCP&L) was awarded the construction responsibility to connect clean energy generated by New Jersey’s offshore wind farms to the power grid.
JCP&L, a subsidiary of FirstEnergy, won the award from the New Jersey Board of Public Utilities (BPU), who picked them from 80 proposals submitted by 13 different transmission developers.
Approximately $723 million in investments was awarded to JCP&L by BPU to build new and upgrade existing transmission infrastructure. This represents about 70 percent of the nearly $1.1 billion project. The cost of the project is expected to be shared by all of the state’s electric customers.
“This is a historic moment for the state of New Jersey, and we are excited to play such an important role in helping the state meet its initial clean energy goal of 7500 megawatts of wind-generated electricity by 2035,” Jim Fakult, president of New Jersey operations for FirstEnergy, said. “Bringing this electricity to the grid in a safe, reliable, cost-effective manner is not just a benefit for JCP&L customers, but all residents and businesses in the state.”
JCP&L’s proposal was submitted in conjunction with offshore transmission developer Mid-Atlantic Offshore Development (MAOD), a new company owned by Shell New Energies US and EDF Renewables North America. With the award, FirstEnergy now has the option to acquire up to a 20 percent equity stake in MAOD with BPU approval.
This project will deliver power from offshore wind farms to a collection point in Monmouth County. The electricity will then be converted from direct current (DC) to alternating current (AC) power that flows through the grid and enters JCP&L’s transmission system at its Larrabee, Atlantic, and Smithburg substations in Monmouth County. The award also includes additional upgrades to existing transmission equipment by JCP&L and other electric utilities to help support the additional electricity.
JCP&L’s proposal stood out for its scalability and the ability to construct the project within the state’s timelines. Further, the BPU highlighted the cost-efficiency and environmental benefits of JCP&L’s plan during the selection process. The plan protects communities and the environment by utilizing existing rights of way with no greenfield development. In addition, the use of a single transmission corridor to bring the electricity onshore will reduce environmental impacts and community disruption.
The award will now be reviewed by the PJM Board in accordance with its Regional Transmission Expansion Plan process. If all goes well there, construction is expected to begin in 2025, with completion by 2030.
