VALLEY FORGE, PA — The New Jersey Board of Public Utilities (NJBPU) and PJM Interconnection have agreed on terms for a new phase of their partnership aimed at advancing New Jersey’s ambitious offshore wind energy goals. This marks a significant step forward in harnessing the power of wind energy and transforming the state’s energy landscape.
The State Agreement Approach Study Agreement, or “SAA 2.0”, allows New Jersey to leverage PJM’s expertise and planning process to develop necessary transmission improvements for the reliable interconnection of public policy resources. This agreement, filed with the Federal Energy Regulatory Commission on February 2, requests PJM to solicit transmission solutions for an additional 3,500 megawatts (MW) of offshore wind energy, bringing the total to 11,000 MW by 2040.
New Jersey is leading the charge as the first state to utilize PJM’s State Agreement Approach process to push forward public policy goals. The partnership between PJM and NJBPU is seen as a model for other states looking to develop the transmission infrastructure required to implement their own energy policies.
“PJM’s competitive planning process allows for creative solutions to complex infrastructure challenges,” said PJM President and CEO Manu Asthana. “New Jersey has been a leader in this approach and can be a template for other states pursuing their individual energy policies.”
In November 2020, the NJBPU requested the use of the SAA to incorporate New Jersey’s initial offshore wind goals of 7,500 MW by 2035 into PJM’s regional transmission planning process. This led to NJBPU awarding $1.1 billion in projects to construct the onshore transmission facilities needed to deliver this power to New Jersey customers. These enhancements to the grid are currently being implemented by the designated entities that were awarded project components.
Christine Guhl-Sadovy, NJBPU President, expressed her excitement about the new agreement. “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,” she said.
This collaboration between New Jersey and PJM aims to support the state’s ambitious clean energy goals, which include a mandate to reach 35% renewable energy by 2025 and 50% by 2030. By incorporating these goals into PJM’s regional transmission planning process, New Jersey is taking proactive steps toward achieving a more sustainable future.
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