Newsroom & Public Notices
New Jersey Board of Public Utilities Pursues Second State Agreement Approach
| For Immediate Release: | Contact: Tracy Munford |
| Date: 02/5/2024 | 609-940-1099 |
This filing allows New Jersey to initiate a PJM study that examines whether an integrated suite of open access transmission facilities designated to support the delivery of offshore wind, both onshore and potentially offshore, could best facilitate meeting New Jersey’s expanded offshore wind goals in an economically and environmentally efficient and timely manner.
“In 2022, New Jersey demonstrated its national leadership in coordinated offshore wind transmission with the first-ever use of State Agreement Approach to help support the interconnection of responsibly developed offshore wind off of our coasts,” said NJBPU President Christine Guhl-Sadovy. “Through our SAA 2.0 Study Agreement with PJM, we are excited to take a major step forward in evaluating the best and most cost-effective ways to on shore more clean energy and further cement New Jersey as a national leader in the offshore wind industry.”
The SAA is a mechanism where a state or group of states can sponsor a project to meet its state public policy requirements, as long as it agrees to voluntarily be responsible for cost responsibility for the transmission project. SAA 1.0 awarded a transmission solution to bring 7.5 GW of offshore wind energy on shore.
In 2021, Governor Murphy increased the State’s offshore wind target from 7.5 GW by 2035 to 11 GW by 2040. The SAA 2.0 study agreement will consider the interconnection of an additional 3,500 MW of offshore wind energy to reach Governor Murphy’s goal of 11,000 MW by 2040. New Jersey was the first in the country to take advantage of this innovative approach to develop coordinated transmission for wind energy.
“The continued collaboration between PJM and New Jersey through the State Agreement Approach underscores PJM’s commitment to reliably and cost-effectively facilitating states’ renewable energy policy goals,” said PJM President and CEO Manu Asthana. “PJM’s competitive planning process allows for creative solutions to complex infrastructure challenges. New Jersey has been a leader in this approach and can be a template for other states pursuing their individual energy policies.”
President Guhl-Sadovy added, “We believe that a coordinated and planned approach could result in more efficient and cost-effective transmission solutions; significantly reducing the risks of permitting and construction delays and protecting ratepayers with cost containment options.” She added, “This approach helps minimize environmental impacts associated with onshore and potentially offshore upgrades. We look forward to further evaluation and planning, as a result of SAA 2.0.”
New Jersey’s first State Agreement Approach (SAA), when announced in 2022, was a national model to create the infrastructure to address transmission challenges and identify solutions. Coordinated transmission alternatives through SAA 2.0 will have no impact on the offshore wind projects that have already been awarded, or that will be awarded up to 7.5 GW. Any coordinated transmission solution that emerges from SAA 2.0 would be used for new projects approved in later solicitations up to Governor Murphy’s goal of 11 GW.
About New Jersey’s Clean Energy Program (NJCEP)
NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.
Board of Public Utilities (NJBPU)
NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.
