LS Power Grid Details New Jersey Offshore Wind Power Transmission Bid

Electric transmission company LS Power Grid, a subsidiary of LS Power, has unveiled plans to bring power generated from New Jersey offshore wind farms into the state’s onshore electric grid.

The company said the costs of its plan are between 20 and 50 per cent lower than the costs of competing proposals, which would amount to at least USD 1 billion (approximately EUR 907 million) in savings to the state.

LS Power Grid’s proposals include using alternating current (AC) technology and extending the AC grid into the Atlantic, as well as routing subsea cables through consolidated corridors to limit the impact on the ocean environment, and the use of an existing shoreline landing point.

“Our approach of extending the AC grid to near the shore and into the ocean will allow New Jersey to take advantage of its proximity to designated offshore wind areas and avoid costly direct current (DC) connections. Those new DC connections and terminals, as recommended in competing proposals, will require billions of additional dollars in expenses, which are simply not necessary,” said Paul Thessen, President of LS Power Grid.

The plans, collectively called Clean Energy Gateway, were submitted in response to the state’s request for proposals.

Developers have submitted 80 offshore wind transmission proposals, which are currently being evaluated by the New Jersey Board of Public Utilities (NJBPU) in coordination with grid operator PJM Interconnection LLC.

New Jersey aims at having 50 per cent of its energy coming from renewable sources by 2030, and 100 per cent by 2050. The state’s plans include an offshore wind generation goal of 7.5 GW by 2035.

So far, the state has awarded a combined 3.7 GW of offshore wind capacity across three offshore wind projects off the coast of Atlantic City. 

In 2019, New Jersey selected Ørsted’s 1,100 MW Ocean Wind project and last year it awarded the largest combined offshore wind capacity of 2,658 MW to EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II projects.

At the beginning of this month, the New Jersey Board of Public Utilities said it would release the third, 1,200 MW solicitation for offshore wind development by January 2023, rather than the previously anticipated September 2022.

The new timeline will allow for the State Agreement Approach (SAA) process for the first-of-its-kind coordinated transmission solution to be completed and the outcome incorporated into the Third Solicitation guidance documents, according to NJBPU.

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