'Greater use of scarce resources' | Anbaric chief calls for planned US grid straddling land and sea

Clarke Bruno says 'systematic approach' to development of regional on-and-offshore transmission networks will lead to 'fewer cables and fewer costs to the environment'

Anbaric CEO Clarke Bruno
Anbaric CEO Clarke BrunoFoto: Anbaric

Clarke Bruno, the CEO of US grid developer Anbaric, has added his voice to an industry chorus that believes planning construction of future offshore wind transmission infrastructure off the eastern seaboard must be framed in the context of a shoreline-straddling grid that links together integrated regional power networks.

Bruno, speaking at the recent American Clean Power Association Planned Offshore Grid webinar said a “planned” grid could consolidate production from multiple projects at sea via an offshore network connected to the onshore grid at fewer, stronger landing points than if each project were tethered to shore by its own export cable.

“It’s a greater use of scarce resources, and results in fewer cables and fewer costs to the environment,” he said , adding that a planned offshore grid would be easier to balance, more sustainable, and cheaper in the long run.

“To unlock the benefits [the offshore wind industry] has been promising, it is necessary to truly build a grid instead of just a bunch of disconnected lead lines,” said Bruno, whose company recently refurbished the former coal-fired power plant at Brayton Point in the state of Massachusetts to take output from the giant Mayflower wind farm in the US Atlantic and is in the running to build the in-development offshore grid off New Jersey.

Transmission concerns are top of mind for the nation's offshore wind industry, with 30GW of capacity expected to be connected by 2030, even the $65bn for grid transmission upgrades included in the $1tn Infrastructure Bill might fall short of actual need.
New Jersey is pioneering how best to integrate the region’s future offshore and onshore grids, having set the ambitious goal of building out a transmission backbone capable of handling 7.5GW of offshore wind capacity by 2035, as per the state’s official objective.
Last week, the New Jersey Board of Public Utilities (BPU) and regional transmission operator PJM filed for formal approval with the Federal Energy Regulatory Commission (FERC), the federal overseer of the nation's grid, to move forward with their plans for offshore wind grid development under the state agreement approach (SAA).

The SAA process allows states to incorporate policy goals as an equal to market efficiency or reliability, as is typical, when proposing grid upgrades.

“Providing a framework for implementing the SAA is a critical next step on the pathway for efficient offshore wind interconnection between the approved wind farms and the onshore grid,” said NJBPU president Joseph Fiordaliso.

“This agreement approach unlocks the potential for drastically minimizing community impacts, while saving money for New Jersey’s ratepayers.”

FERC opened up the SAA process last spring, and approval under SAA is conditional on the state footing the bill. So far, New Jersey is the only state to take advantage of the new rules.

New Jersey takes 'another step'

“We are excited to take another step with New Jersey in the first-ever implementation of the SAA,” said Manu Asthana, CEO of PJM Interconnection. PJM and BPU can “select an optimised, comprehensive solution that maintains electric reliability while advancing the state’s energy policy goals”.

PJM and BPU got the go-ahead from FERC last year to begin the process and open up a request for proposals (RfP) on offshore wind-ready grid upgrades. Categories include the upgrade of existing onshore transmission facilities, the construction of new onshore and offshore infrastructure, and the creation of a grid at sea.

The bids could be for any single or multiple categories, with the state retaining the right to move forward with any project and to mix-and-match proposals from several developers.

The RfP attracted nearly 80 bids from some of the industry’s biggest utilities and merchant transmission developers, including from Anbaric, along with proposals from the US’ largest renewables operator, NextEra, New York utility Con Edison, and an Orsted-PSEG tie up with Coastal Winds.

PJM/BPU has requested that FERC issue a ruling on whether to approve the filing on 15 April.

FERC’s approval of the filing will formalise what has been an ongoing dive into the bids to determine which – if any – projects go forward.

Permitting and regulatory hurdles

Transmission projects face permitting and regulatory hurdles similar to those confronting offshore wind as well as some historic local opposition in general, and constructability will be a major factor in the PJM/BPU’s decision-making process.

New Jersey is already a leader in the emerging US offshore wind play and has awarded nearly 4GW of offshore wind capacity. The state’s BPU announced a third-round auction for an additional 1.2GW of capacity beginning in second quarter of 2022, with auctions every year until 2028 to meet the 2035 goal.

The offshore wind industry is following developments in New Jersey closely to work out how the process unfolds.

“To truly jump start an industry, we need to move from an incremental approach to a more systematic approach,” Anbaric's Bruno said.

Fiordaliso added: “New Jersey is once again leading the way on offshore wind.”

(Copyright)
Published 1 February 2022, 20:07Updated 2 February 2022, 08:56
AnbaricClarke BrunoACPAPJM InterconnectionNextEra