Power generated from the gas turbine project will be delivered to the PJM market during summer of 2018.
The regional transmission organization (RTO), PJM coordinates the wholesale electricity in all or parts of 13 states and the District of Columbia.
PSEG plans to commence construction of the $600m project in 2016 at the existing Sewaren generating station site in Woodbridge, New Jersey, to replace the Sewaren units 1, 2, 3 & 4.
The units are being decommissioned following almost 70 years of operational life.
The plant is expected to create 350 jobs during the two-year construction phase and up to 28 full-time jobs once the plant is operational.
Featuring GE’s high efficiency H-Class combustion turbine, the new power plant is designed to provide enhanced resilience and flexibility by generating power using natural gas or ultra-low sulfur distillate (ULSD) fuel oil as a back-up.
In August, the project cleared the PJM’s Reliability Pricing Model Base Residual Auction, which is major step in ensuring its power supply capability in New Jersey and the broader PJM transmission area.
PSEG Fossil president Rich Lopriore said: "Sewaren 7 represents an important investment by PSEG in New Jersey’s power landscape.
"Under PJM’s new capacity performance standards, it’s more important than ever to provide a high level of reliability."
With more gas-fired generation being developed in the northeast, fuel security and reliability has been a major focus in PJM’s capacity market planning.
Black & Veatch energy business president Dean Oskvig said: "When completed, Sewaren 7 will serve as a highly efficient, reliable power source within PJM, the nation’s largest wholesale energy market."
