The New Jersey Board of Public Utilities (NJBPU) disclosed on Monday its ongoing partnership with regional grid operator PJM Interconnection for the implementation of State Agreement Approach 2.0 (SAA), geared towards bolstering offshore wind transmission infrastructure.
In a significant development, PJM has formally submitted the SAA 2.0 study agreement to the Federal Energy Regulatory Commission (FERC), paving the way for New Jersey to initiate a comprehensive assessment of transmission options aimed at facilitating the state's ambitious offshore wind expansion objectives. Notably, New Jersey augmented its offshore wind target in 2021, elevating it from 7.5 gigawatts (GW) by 2035 to 11 GW by 2040.
NJBPU President Guhl-Sadovy emphasized the potential benefits of a coordinated and strategic approach, underscoring the prospects for more efficient and cost-effective transmission solutions. Guhl-Sadovy highlighted the importance of mitigating risks associated with permitting and construction delays while safeguarding ratepayers through mechanisms aimed at cost containment.
The SAA mechanism, which enables states or groups of states to sponsor projects aligning with their public policy objectives, has emerged as a pivotal tool in advancing offshore wind initiatives. New Jersey notably utilized the State Agreement Approach for the first time in 2022 to support the interconnection of offshore wind projects, resulting in the award of a transmission solution for 7.5 GW of offshore wind capacity through SAA 1.0.
With the introduction of SAA 2.0, the focus now shifts towards evaluating the interconnection of an additional 3.5 GW of offshore wind energy, thereby facilitating the realization of New Jersey's 11 GW offshore wind target by 2040, as confirmed by NJBPU.
