The PJM Interconnection LLC and New Jersey Board of Public Utilities filed a first-of-its-kind joint agreement with federal regulators Jan. 27 that details how the grid operator will evaluate electric transmission projects proposed in response to the state's lofty offshore wind energy goals.
PJM announced in October 2021 that it received 80 proposals for onshore and offshore wind transmission facilities capable of helping New Jersey comply with an executive order that requires 7,500 MW of offshore wind generation by 2035.
The goal is part of that state's broader effort to achieve a 100% clean energy grid by 2050.
The proposals were submitted under a special State Agreement Approach provision in PJM's tariff, which allows states such as New Jersey to solicit proposals with specific public policy goals in mind. PJM's regional transmission expansion plan is typically driven by reliability or market-efficiency criteria.
"We are excited to take another step with New Jersey in the first-ever implementation of the State Agreement Approach," PJM President and CEO Manu Asthana said in a statement. "PJM's proven competitive process will allow the Board of Public Utilities to select an optimized, comprehensive solution that maintains electric reliability while advancing the state's energy policy goals."
The Jan. 27 proposal (ER22-902) filed with the Federal Energy Regulatory Commission establishes a framework for implementing the State Agreement Approach, BPU President Joseph Fiordaliso said in a news release.
The filing "is a critical next step on the pathway for efficient offshore wind interconnection between the approved wind farms and the onshore grid," Fiordaliso said.
PJM said in a blog post that it expects to recommend the most cost-effective and efficient transmission solutions to the BPU by May. The board will likely decide by September which projects to sponsor.
Proposals under PJM's review covered a range of considerations.
Developers were asked to address potential upgrades to existing transmission facilities and the possible extension of the onshore transmission grid closer to offshore wind facilities. They were also asked to propose optimal landfall approaches and interconnections between offshore substations.
Of 80 proposals received, 45 proposed to upgrade existing onshore transmission facilities, 22 proposed new transmission interconnection facilities, 26 proposed new offshore transmission interconnection facilities, and eight proposed offshore transmission networks, according to PJM.
PJM asked that FERC accept the proposed agreement by April 15.