PSEG and Ørsted support New Jersey’s clean energy future

Source: press release, 28 October 2021

photo: Ørsted
photo: Ørsted

PSEG and Ørsted have announced that the companies have submitted several joint proposals for offshore wind transmission that support New Jersey’s ambitious clean energy goals. Submitted into the PJM State Agreement Approach Proposal Window, the joint proposals are collectively named Coastal Wind Link and are designed to deliver thousands of megawatts of offshore wind energy into New Jersey, drawing from PSEG’s extensive transmission experience and Ørsted’s expertise in offshore wind energy.

“We applaud New Jersey for setting aggressive clean energy goals and recognising the need to continue to ensure a reliable, resilient energy system that also enables the state’s clean energy future,” says Lathrop Craig, PSEG vice president of Wind Development. “PSEG has set a net-zero by 2030 climate vision and will continue to support the state in the realisation of its clean energy goals. Our investments, including those in Coastal Wind Link, will focus on fostering sustainable clean energy infrastructure. The Coastal Wind Link proposals bring together the vast expertise and track record of Ørsted and PSEG – a track record that includes a commitment to leveraging diverse suppliers and supporting the communities where we do business.”

“New Jersey continues to be a leader in clean energy, both in development of offshore wind and with forward-looking transmission solutions,” says David Hardy, CEO of Ørsted Offshore North America. “We support the state’s ambitions of building a lasting offshore wind industry and clean energy resource for residents for many years to come. We’re pleased to submit our Coastal Wind Link proposals, which offer a range of transmission and offshore expertise for policymakers to utilise in achieving this vision.”

The Coastal Wind Link proposals will provide reliable, resilient and cost-effective infrastructure to the state as thousands of megawatts of new, clean renewable energy come onto the grid. The Coastal Wind Link proposals encompass individual and networked solutions and would ensure that New Jersey has a clear path to connect to the offshore wind energy coming online during the next decade while minimising environmental impacts along New Jersey’s coastline. The proposals will utilise existing PSEG infrastructure in New Jersey to expedite development and enhance constructability.

PSEG and Ørsted support the state of New Jersey, the New Jersey Board of Public Utilities and PJM in this first-of-a-kind policy-led approach to transmission in the PJM market, and also support the ambition for integrating offshore wind into the state’s energy grid as efficiently and cost-effectively as possible. In submitting these proposals, PSEG and Ørsted are taking another major step in helping New Jersey meet its goals of integrating 7,500 megawatts of offshore wind energy by 2035 and achieving 100% clean energy by 2050.

Partnership expansion
In an expansion of their existing offshore wind partnership in New Jersey, PSEG and Ørsted bring extensive on- and offshore expertise to these proposals. PSEG has deep expertise in construction and permitting for transmission and distribution infrastructure, as well as experience working across stakeholders to execute complex proposals on time and on budget.

Ørsted has extensive experience constructing and maintaining generation and transmission assets in the offshore environment, including building offshore transmission systems for wind farms in the UK and 8 gigawatts of installed offshore wind capacity globally. Ørsted has two large-scale offshore wind farms in development in New Jersey, including Ocean Wind 1, in partnership with PSEG, and Ocean Wind 2.

Together, PSEG and Ørsted will bring their complementary skills and unmatched experience to ensure the proposed projects can bring the greatest possible benefits to New Jersey.

PSEG’s investments in critical energy infrastructure serve as an important economic engine in the region. In 2020, PSEG spent nearly USD 2 billion with other New Jersey-based businesses and suppliers that provide additional jobs throughout the workforce. As part of its existing offshore wind energy projects, Ørsted has committed to more than USD 1.5 billion of in-state spending, which will drive job creation, community development, investments into port infrastructure and much more to help position New Jersey as a clean energy leader.

The proposals aim to deliver hundreds of millions of dollars’ worth of benefits to the state economy and hundreds of skilled jobs over the next decade, benefiting many local businesses and trades in helping to achieve the state’s energy goals. The proposals align with PSEG’s corporate target of achieving 30% of applicable spending allocated to diverse suppliers, including minority-, women-, veteran- and LGBTQ+-owned suppliers. During 2020, PSEG had a sixth consecutive record-setting year buying goods and services from diverse suppliers; more than 28% of the company’s purchases were with diverse vendors. PSEG and Ørsted are proud to play a leading role as New Jersey expands its clean energy economy, and Coastal Wind Link can represent the next major step in that growth.

PSEG has a long history of working with local contractors implementing large-scale transmission projects in New Jersey, and Ørsted is committed to building projects utilising union labor and collectively bargained, pre-hire agreements. In 2020, Ørsted signed an agreement with North America’s Building Trades Unions, establishing a national framework and setting the industry standard.

William T. Mullen, president of the New Jersey Building and Construction Trades Council, says, “PSEG has served the state for more than a century with expertise in the design, construction and maintenance of large-scale electric transmission systems. PSEG and its union partners are proud of our shared commitment and contributions to New Jersey. New Jersey’s transition to the clean energy economy should be accompanied by opportunities for workers in the skilled trades to ensure quality results for the benefit of the state, its customers and the environment. We look forward to working together with Ørsted and PSEG to grow the state’s clean energy economy.”

“Over the last 10 years, PSEG has invested billions of dollars in transmission infrastructure to help keep PJM’s grid as resilient as possible against the impacts of extreme weather and climate change,” says Joseph Egan, president of the state’s IBEW Construction Locals. “We’re eager to work with PSEG and Ørsted to achieve New Jersey’s ambitious offshore wind development plans, which will join nuclear power as our state’s largest sources of clean, carbon-free energy, and also will help create jobs for thousands of skilled workers.”

“PSEG is the state’s most experienced and continually proven developer of large-scale transmission projects and has consistently worked to invest, upgrade and create new transmission networks,” adds Daniel Cosner, president of the South Jersey Building Trades and business manager of IBEW LU 351. “As clean energy leaders, PSEG and Ørsted are best positioned to advance the state’s offshore wind generation goals while sustaining the reliability of the system and power grid. On behalf of the IBEW and the South Jersey Construction and Building Trades Council, I look forward to partnering with these clean energy leaders and to leveraging the expertise of our trades and the community presence they have established to advance these important projects.”

In addition to the Coastal Wind Link proposals submitted jointly with Ørsted, PSEG’s affiliate, Public Service Electric and Gas (PSE&G), New Jersey’s largest electric and gas utility, submitted multiple proposals into the PJM State Agreement Approach Proposal Window. PSE&G’s proposals target upgrades to the onshore grid that will be necessary to accommodate the new generation being built offshore.