$1 Billion To Expand Offshore Wind Transmission In NJ

TRENTON, NJ — In what the state agency is calling a "historic" decision, the Board of Public Utilities has selected an offshore wind transmission solution for the state.

The Larrabee Tri-Collector Solution (LTCS) offshore wind transmission project was proposed by Mid-Atlantic Offshore Development (MAOD) and Jersey Central Power & Light Company (JCP&L).

Additionally, the Board awarded onshore grid upgrade projects to enable the capacity injection afforded by the LTCS to Atlantic City Electric, BGE, LS Power, PECO, PPL, PSE&G and Transource.

"These project selections will establish the first coordinated solution for offshore wind transmission in the U.S., testifying to New Jersey’s status as a national forerunner in clean energy production," the Board said in a release.

The MAOD-JCP&L proposal is estimated to cost $504 million. The necessary onshore grid upgrade projects are estimated to cost $568 million, for a total of $1.07 billion for the full LTCS. The Board estimates that ratepayers will save more than $900 million through these projects.

Using a state agreement approach, this solution will connect three or four offshore wind projects to the power grid on land.

However, a full offshore wind backbone was not granted. The BPU is upgrading the existing power grid but did not opt for more expensive projects that would build a backbone transmission system offshore to bring power onshore, instead waiting for federal tax credits that would offset the cost.

As offshore wind goals increase, additional solicitations may be needed, the BPU said.

"New Jersey has been at the leading edge of offshore wind development since Governor Murphy took office, and today’s action is further evidence that we are committed to developing offshore wind and the necessary transmission to shore in the most cost-effective, reliable, and responsible manner possible," said NJBPU President Joseph L. Fiordaliso. "I would like to thank Board staff for a very thorough job of evaluating the many applications we received for this first in the nation coordinated offshore wind transmission solicitation process."

"This is a historic moment for the state of New Jersey, and we are excited to play such an important role in helping the state meet its initial clean energy goal of 7500 megawatts of wind-generated electricity by 2035," said Jim Fakult, president of New Jersey operations for FirstEnergy.

The project was praised by environmental groups, who highlighted the project's cost-effectiveness and its environmentally responsible approach.

"Today’s decision cements a historic selection to coordinate how we plan for the gigawatts of clean, renewable energy and then be able to hook them into our electric grid in the most efficient, environmentally friendly way possible," said Doug O’Malley, Director of Environment New Jersey.

"We look forward to continuing to work with BPU to ensure that they can continue responsibly moving toward meeting our clean energy goals," said Ed Potosnak, Executive Director of the New Jersey League of Conservation Voters.

"We applaud the BPU and congratulate the winners of today’s offshore wind transmission decision," said Drew Tompkins, Director of the Jersey Renews Coalition. "The decision today continues New Jersey’s status as a leader in offshore wind and will facilitate our transition to the clean energy economy, which will combat climate change while providing thousands of good paying, often union jobs for our communities."