Brattle Consultants Evaluate New Jersey State Agreement Approach for Offshore Wind Transmission in Recent Report
Prepared for the New Jersey Board of Public Utilities (NJBPU)
The New Jersey Board of Public Utilities (NJBPU) has approved the procurement of offshore wind (OSW) transmission solutions under the PJM Interconnection’s first State Agreement Approach (SAA). In collaboration with BPU and PJM, a team of Brattle consultants, along with Herling Power Grid Consulting, Holland & Knight, and Dewberry Engineers, led the evaluation of the transmission proposals received by PJM in this SAA solicitation, which was initiated to identify necessary transmission solutions to support New Jersey’s goal of 7,500 MW of OSW generation capacity by 2035
Compared to each offshore wind generator arranging its own grid connections, investment in the SAA transmission projects – which BPU awarded to nine companies – will allow the state to:
- Reduce the cost of transmission needed to achieve 7,500 MW of OSW generation by 2035 by over $900 million;
- Significantly reduce schedule and cost uncertainties;
- Utilize the existing grid more efficiently;
- Allow for a significant reduction of transmission-related environmental and community impacts;
- Maximize the availability of approximately $2.2 billion in federal tax credits; and
- Allow the state to more cost-effectively reach its new 11,000 MW by 2040 offshore wind goal through future procurements.
The New Jersey BPU Order is available here, and other documents in the BPU case are available here. The full Brattle report, “New Jersey State Agreement Approach for Offshore Wind Transmission: Evaluation Report,” can be found below.
