The New Jersey Board of Public Utilities (NJBPU) has selected an offshore wind transmission project as part of a grid upgrade.
The Larrabee Tri-Collector Solution (LTCS) offshore wind transmission project was proposed by Mid-Atlantic Offshore Development (MAOD) and Jersey Central Power & Light Company.
In addition, the board has awarded onshore grid upgrade projects to enable the capacity injection afforded by the LTCS to Atlantic City Electric, BGE, LS Power, PECO, PPL, PSE&G, and Transource. Board Order.
The MAOD-JCP&L proposal is estimated to cost $504m. The necessary onshore grid upgrade projects are estimated to cost $568m, for a total of $1.07bn for the full LTCS.
These project selections will establish the first coordinated solution for offshore wind transmission in the US, testifying to New Jersey’s status as a national forerunner in clean energy production.
This coordinated transmission solution will minimise cost and other impacts while supporting the continued expansion of offshore wind energy in the state.
The selected projects have the potential to save New Jersey ratepayers $900m compared to the cost of transmission without utilising this coordinated approach through the State Agreement Approach (SAA).
The board also directed its staff to begin necessary preliminary steps to support a future State Agreement Approach (SAA) 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.
“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,” said NJBPU President Joseph Fiordaliso.
“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.”