NJ eyes offshore wind transmission solicitation
New Jersey has begun the process for its second offshore wind transmission solicitation, which will bring the state closer to its newly increased offshore wind policy target of 11GW.
The state has made a formal request to partner with PJM Interconnection, New Jersey’s regional grid operator, under PJM’s State Agreement Approach (SAA).
Similar to the first such solicitation, this competitive solicitation would be administered by PJM, along with the New Jersey Board of Public Utilities (NJBPU).
The state aims to use the SAA to optimise the delivery of offshore wind generation into its transmission system.
SAA is a mechanism in the PJM rules that allows one or more states within the region to include state public policy objectives within the regional transmission planning process.
Under the first SAA with PJM, New Jersey agreed to relevant cost-assignment terms and assigning new transmission capability to generators selected by the state.
It was the first state to utilize this process, finding that this approach reduces the possibility of offshore wind project delays.
New Jersey last year (2022) expanded its public policy goals by over 3GW to a total of 11GW of offshore wind generation by 2040. As a result, the state intends to hold offshore wind solicitations every 18 to 24 months through 2026 to meet its stated policy goals.