PJM, New Jersey Seek Federal Approval of Offshore Wind Transmission Proposal

PJM Interconnection LLC and the New Jersey Board of Public Utilities on Jan. 27 filed a joint agreement with the Federal Energy Regulatory Commission (FERC) to implement an offshore wind transmission grid solicitation. The agreement is expected to serve as a national model for states to incorporate clean energy priorities into the regional transmission planning process. The first-of-its-kind agreement is facilitated by the State Agreement Approach, or SAA, established by FERC Order No. 1000.

SAA provides a formal mechanism by which PJM’s regional transmission expansion planning process can respond to a request from one or more states that PJM develop transmission facilities that would assist them in implementing their public policy goals.

Earlier in November 2020, New Jersey became the first state to align offshore wind policy with PJM’s transmission planning by requesting the grid operator to open a competitive solicitation for offshore wind transmission solutions to meet the state’s goals. The agreement focused on improving and expanding the PJM transmission system and to identify system improvements to interconnect and provide for the deliverability of 7,500 megawatts of offshore wind generation by 2035. In Oct. 2021, PJM announced that it received 80 proposals in response to its solicitation on behalf of the New Jersey board for potential offshore wind transmission projects.

This agreement sets forth the process that will govern the timely review and selection of specific transmission projects, which may be onshore and/or offshore facilities, to effectuate New Jersey’s public policy goals. PJM requested that FERC issue an order accepting the filing by April 15, 2022.