New Jersey Reschedules Third Offshore Wind Solicitation

The New Jersey Board of Public Utilities (NJBPU) on Feb. 8 announced that the state’s third solicitation for offshore wind development will be issued in January 2023 instead of September 2022. The new timeline complements the coordinated transmission solution facilitated by a joint agreement between NJ BPU and PJM Interconnection LLC. Nevertheless, solicitations 4 and 5 will go forward in 2024 and 2026 as previously planned.New Jersey has a goal of deploying 7,500 megawatts of offshore wind energy by 2035.

In January, PJM and NJ BPU filed an agreement with the Federal Energy Regulatory Commission seeking approval to implement an offshore wind transmission grid solicitation – the first-of-its-kind agreement facilitated by the State Agreement Approach, or SAA, established by FERC Order No. 1000. PJM received 80 proposals in response to a competitive solicitation window that ran from April 15 to Sept. 17, 2021. The grid operator anticipates providing recommendations for  cost-effective and efficient transmission solutions in May. The agreement is expected to serve as a national model for states to incorporate clean energy priorities into the regional transmission planning process.

By updating the schedule, the SAA process can be accomplished, and the results integrated into the third solicitation guidance document. Additionally, the revised schedule will provide sufficient time for new lease area developers in the New York Bight to plan the subsequent progress of their lease area bids.

In 2019, the state’s first solicitation materialized when Ørsted won the bid for its 1,100 megawatt Ocean Wind project. In 2021, both EDF/Shell’s Atlantic Shores Offshore Wind project and Ørsted’s Ocean Wind II project were awarded 2,658 megawatts of offshore wind capacity.