FERC approves collaboration between PJM, New Jersey to boost offshore wind

The New Jersey Board of Public Utilities will use PJM Interconnection’s competitive planning process to help New Jersey advance its offshore wind goals.

The collaboration, which asks PJM to solicit transmission solutions to serve an additional 3,500 MW of offshore wind energy, totaling 11,000 MW, by 2040, was approved by the Federal Energy Regulatory Commission (FERC).

This is the second time New Jersey has leveraged a provision in PJM’s Operating Agreement that enables the state to take advantage of PJM’s expertise and planning process to develop transmission improvements.

Overall, New Jersey is the first state to use PJM’s State Agreement Approach process to advance public policy goals. PJM’s work with NJBPU has been cited as a model for other states to develop the transmission infrastructure needed for their own energy policies.

PJM filed the agreement, signed by both PJM and NJBPU, with FERC on Feb. 2. It was made effective as of Jan. 3, 2024, as requested.

This is the next phase of PJM’s State Agreement Approach Study Agreement, or SAA 2.0. In November 2020, NJBPU requested the use of the SAA to incorporate New Jersey’s initial offshore wind goals of 7,500 MW by 2035 into PJM’s regional transmission planning process.

That resulted in NJBPU awarding $1.1 billion in projects to construct the onshore transmission facilities necessary to deliver those 7,500 MW to New Jersey customers. Those enhancements to the grid are currently being implemented by the designated entities that were awarded project components.