At the direction of the New Jersey Legislature and Governor Murphy’s Energy Master Plan, NJBPU is working to expand the state’s electrical transmission system to accommodate the buildout of 7,500 MW of offshore wind by 2035. The State has also taken important steps to ensure the wind electricity generated can reach New Jersey consumers in the most cost-effective, efficient, and environmentally sensitive manner.

 

In pursuit of this goal, in November 2020 NJBPU asked PJM Interconnection (PJM) to incorporate New Jersey’s offshore wind goals into the regional transmission planning process, becoming the first state to use a novel regulatory pathway known as the “State Agreement Approach” (SAA).

 

The 2021 New Jersey SAA process will be a first-of-its-kind competitive transmission solicitation process, underscoring New Jersey’s commitment to the development of offshore wind generation. This approach will not only enhance the state’s offshore wind program, but increasing competition in this way drives down costs, provides savings for consumers, reduces risk, spurs innovation, and significantly reduces the environmental footprint of new transmission lines.

 

Bidders proposed transmission projects to support New Jersey’s offshore wind industry through the PJM competitive planning process website, which also lists the solicitation documents. The solicitation closed on September 17, 2021.

 

On September 24, 2021 Staff released the 2021 State Agreement Approach Process Guidance Document to provide more detail on next steps of the evaluation process and timeline. The close of the application window starts a multi-month evaluation process in which NJBPU and PJM will review all proposals and determine which, if any, are best suited for New Jersey’s needs and represent the best value for New Jersey consumers.