PSEG and Ørsted Support New Jersey's Clean Energy Future with Strategic Offshore Wind Transmission Proposals

Rhea-AI Summary

PSEG and Ørsted have jointly proposed the Coastal Wind Link, aimed at enhancing offshore wind transmission in New Jersey. This initiative is part of the state's commitment to achieving 7,500 megawatts of offshore wind energy by 2035 and 100% clean energy by 2050. The proposals leverage PSEG's transmission experience and Ørsted's offshore expertise, promising reliable and cost-effective infrastructure. The collaboration is expected to create hundreds of millions of dollars in economic benefits and skilled jobs over the next decade, fostering a sustainable clean energy future in New Jersey.

Positive

• Joint proposals aim to deliver thousands of megawatts of offshore wind energy.
• Expected to create hundreds of millions in economic benefits and skilled jobs over the next decade.
• Aligns with New Jersey's clean energy goals of 7,500 megawatts by 2035 and 100% clean energy by 2050.
• Utilizes existing PSEG infrastructure to accelerate development and enhance project viability.

Negative

• None.

NEWARK, N.J., Oct. 28, 2021 /PRNewswire/ -- PSEG and Ørsted today announce 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 recognizing the need to continue to ensure a reliable, resilient energy system that also enables the state's clean energy future," said 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 realization 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," said 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 utilize 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 minimizing environmental impacts along New Jersey's coastline. The proposals will utilize existing PSEG infrastructure in New Jersey to expedite development and enhance constructability.

Supporting a clean energy future

PSEG and Ørsted are pleased to 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.

An experienced partnership

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, the world leader in offshore wind energy, has extensive experience constructing and maintaining generation and transmission assets in the offshore environment, including building offshore transmission systems for wind farms in the U.K. 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.

Supporting the clean energy economy

PSEG's investments in critical energy infrastructure serve as an important economic engine in the region. In 2020, PSEG spent nearly $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 $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 utilizing 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, said: "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," said 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," added 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."

Additional transmission

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.

Today's announcement underscores PSEG's evolution to a clean energy infrastructure-focused company, which was recently detailed during PSEG's 2021 investor conference and in its 2021 Sustainability and Climate report.

About PSEG
Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a publicly traded diversified energy company with approximately 13,000 employees. Headquartered in Newark, N.J., PSEG's principal operating subsidiaries are: Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North America for 13 consecutive years. (https://corporate.pseg.com).

About Ørsted Offshore North America
The Ørsted vision is a world that runs entirely on green energy. Ørsted ranks as the world's most sustainable energy company in Corporate Knights' 2021 Global 100 index of the most sustainable corporations and is recognized on the CDP Climate Change A List as a global leader on climate action.

In the United States, Ørsted operates the Block Island Wind Farm, America's first offshore wind farm, and constructed the two-turbine Coastal Virginia Offshore Wind pilot project – the first turbines to be installed in federal waters.  Ørsted has secured over 4,000 megawatts of additional capacity through six projects in the Northeast and Mid-Atlantic. Ørsted Offshore's North American business is jointly headquartered in Boston, Massachusetts and Providence, Rhode Island and employs more than 150 people. To learn more visit us.orsted.com or follow us on Facebook, Instagram and Twitter (@OrstedUS).

PSEG Forward-Looking Statement

The statements contained in this press release that are not purely historical are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on PSEG management's beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: https://investor.pseg.com. All of the forward-looking statements made in this press release are qualified by these cautionary statements and PSEG cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, PSEG or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this press release apply only as of the date hereof. While we may elect to update forward-looking statements from time to time, PSEG specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings.  You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com.

CONTACTS:
Media Relations	Media Relations
	Marijke Shugrue
	908-531-4253
	Marijke.Shugrue@pseg.com
	Tory Mazzola 857-284-1430 TORMA@orsted.com
Investor Relations	Investor Relations
	Carlotta Chan
	973-430-6565
	Carlotta.Chan@pseg.com

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FAQ

What is the Coastal Wind Link proposed by PSEG and Ørsted?

The Coastal Wind Link is a set of joint proposals aimed at improving offshore wind transmission in New Jersey, supporting the state's clean energy goals.

How much offshore wind energy does New Jersey aim to integrate by 2035?

New Jersey aims to integrate 7,500 megawatts of offshore wind energy by 2035.

What economic impact will the Coastal Wind Link proposals have?

The proposals are expected to generate hundreds of millions of dollars in economic benefits and create numerous skilled jobs over the next decade.

What are the goals of PSEG and Ørsted's partnership?

The partnership aims to leverage their expertise to support New Jersey's transition to a clean energy economy and enhance offshore wind infrastructure.