Anbaric President says all eyes on New Jersey as test case for offshore transmission solicitation

New Jersey is moving forward with a unique approach to transmission planning as it aims to hit its offshore wind goal of 7,500 MW by 2035. Last month, regional grid operator PJM opened a 120-day solicitation window on behalf of the state's Board of Public Utilities (BPU) for developers to submit transmission proposals that would help deliver offshore wind energy to the existing power grid.

The competitive solicitation is the result of a request by the BPU to incorporate the state’s offshore wind public policy goals into PJM’s regional transmission planning process through the State Agreement Approach.

New Jersey is the first and only state to fully align its offshore wind transmission goals with its regional grid operator’s planning process--a move that could establish the Garden State as the epicenter of a burgeoning new industry.

“For New Jersey to take this step, partner with PJM and use the State Agreement Approach in a way that's never been done before--I think it says a lot to the industry,” Janice Fuller, President, Mid-Atlantic, Anbaric, told NPM. “New Jersey is already seen as a leader in the offshore wind industry because of what it has done with the really predictable solicitation schedule, the establishment of the Wind Institute, and the construction of the Wind Port. So it was already there in terms of its commitment and consistency. I think taking this step says to the industry, not only are we here to stay, but we recognize that we need to make sure that we’re building all of the infrastructure necessary to make this industry successful here, and to be able to meet the Governor’s goal and beyond.”

New Jersey made headlines last year with plans to develop a major wind port, which will serve as a hub for essential staging, assembly, and manufacturing for offshore wind projects. The port will be the first purpose-built, greenfield port for offshore wind on the East Coast, with no vertical restrictions and easy access to more than 50 percent of available U.S. offshore wind lease areas.

The USD 300-400m project, to be built in Salem County, has the potential to create up to 1,500 manufacturing, assembly and operations jobs, as well as hundreds of construction jobs.

The state's WIND Institute, which will be established to coordinate and galvanize cross-organizational workforce, research, and innovation efforts, further demonstrates New Jersey's goal to become a leader in the nation's offshore wind industry.

The solicitation

The State Agreement Approach, established by the Federal Energy Regulatory Commission’s (FERC) Order 1000, allows the BPU to explore ready-to-build offshore wind transmission options, including key factors such as cost, siting, environmental impacts and timeframe for construction.

“The way the state is approaching this, they're looking for really creative solutions, which I think is so interesting,” Fuller said. “There are four points of interconnection that are prescribed, but it also says many times throughout the solicitation that developers are not bound to this. If they don’t want to use these points of interconnection, they can use others, as long as they explain why it’s a greater benefit.”

Specifically, the solicitation is seeking upgrades to the existing grid; extension of the onshore transmission grid closer to offshore wind locations; optimal landfall approaches to reduce environmental impacts, and any necessary offshore substations and interconnections between those substations.

“We were excited about the opportunity at Anbaric because this is something we’ve been working on for a while, both with our Ocean Grid development but then also some of the other work we’ve been doing,” Fuller said.

Anbaric is throwing its hat in the ring with its Boardwalk Power Link (BPL) project, which Fuller says will be a component of the developer’s larger proposal to BPU. The 1,200 MW HVDC line, which would connect offshore wind energy produced off New Jersey's coast and come onshore in Monmouth County, would travel through a buried cable to a converter station adjacent to the Deans Substation in South Brunswick.

“We’ve been working to develop that route for a number of years,” Fuller said. “We always thought that Deans made sense to deliver offshore wind, and the BPU obviously recognizes that as well. We’re excited to have the opportunity to present that Boardwalk project for consideration because we do think it's something that makes sense and could help get the power into that congested part of New Jersey."

Leading the way

PJM is currently in talks with other coastal states within its service territory, who have expressed interest in following New Jersey’s lead in utilizing a planned transmission approach to facilitate growing injections of offshore wind.

“I think New Jersey has put itself out there as the test case and is taking that leap in leadership to say we have to do smart planning now if we’re going to reach these goals,” Fuller said. “PJM is already talking about how other coastal states within the PJM region might be interested in this. I think all the states who have aggressive offshore wind goals want to make sure they're doing it the right way and in the most cost-effective way too, because there’s always going to be the pushback on the environmental impact front, and then also the ratepayer impact front.”

At a BPU technical conference on the issue of planned transmission, stakeholders noted that the new approach could potentially minimize the environmental footprint of bringing power ashore, particularly by coordinating the number of times transmission facilities would need to cross environmentally-sensitive beach and ocean habitats.

Stakeholders also noted the benefits of coordinated transmission upgrades in facilitating the delivery of power into the PJM system.

“It’s not going back and having these conversations again and never knowing what’s going to happen with the next project,” Fuller said. “They'll make concessions on a given project, and then a year later they're back at the drawing board with the next. This will give all those communities the ability to have one comprehensive conversation. Those conversations can happen about this whole system--it's not going to be six conversations over the course of years. It's something that can happen essentially now if this schedule happens, with bids due in August and awards sometime next year. It allows for that holistic approach to give people an understanding of what to expect, instead of confronting the problems project by project.”

The solicitation, which closes on 13 August 2021, has drawn a record number of developers, who have been actively engaging in the process leading up to the late summer due date for proposals.

“There’s interest from across the globe,” Fuller said. “The size of this transmission is industry-leading globally, so I think there's attention around the world to see how New Jersey is doing this. I think New Jersey’s schedule being so aggressive, while a little nerve wracking for us developers, will offer things that the industry can react to in real time. This will be the 'proof is in the pudding,' this will be the first real test. All eyes are on New Jersey.”