Phase One of New Jersey’s Energy Storage Program Launched
—
The New Jersey Board of Public Utilities (NJBPU) has taken a significant step towards expanding the state’s energy storage capacity by approving the first phase of the Garden State Energy Storage Program (GSESP). This program aims to deploy 2,000 MW of energy storage by 2030, following a mandate set forth by the Clean Energy Act of 2018.
The NJBPU has emphasized the urgency of this initiative, noting that the rapid construction of energy storage systems (ESS) is critical, as traditional power plants cannot be built within five years due to supply chain constraints. The first phase of GSESP is designed to swiftly incorporate new ESS into the New Jersey grid, helping to reduce electricity bills by alleviating wholesale electricity costs.
Funding for this initial phase will primarily come from the New Jersey Clean Energy Program (NJCEP) budget. GSESP is structured to deliver multiple benefits, including modernizing the state’s electrical infrastructure, stimulating economic growth through job creation and investment, minimizing environmental impacts, and ultimately lowering electricity costs without initially increasing consumer rates. Additionally, GSESP provides incentives for projects that support overburdened communities and promote the redevelopment of brownfields.
The program consists of two phases, with a potential third phase under consideration. Phase one is further divided into two parts. The first part involves a solicitation process to award between 350-750 MW, with a pre-qualification process starting on June 25 and a final bid submission deadline set for August 20. The second part will prepare a solicitation for the first half of 2026 to secure the remaining capacity needed to achieve the 1,000 MW target for phase one.
The second phase, titled ‘Distributed Energy Storage,’ is anticipated to commence in 2026 and will offer incentives for smaller ESS connected to local distribution grids. A possible third phase may introduce a performance-based incentive for transmission-scale systems, although details are still under evaluation.
Historically, New Jersey’s energy storage deployment has been slow. In 2022, the NJBPU proposed policies to incentivize the standalone deployment of ESS. In 2024, a bill progressed through the state legislature to establish a pilot program aimed at incentivizing these deployments, specifically targeting monetary incentives for ESS installers. The 2024 New Jersey Energy Storage Incentive Program Straw Proposal outlines that the 2,000 MW target will primarily be met through the New Jersey Storage Incentive Plan (SIP) and the Competitive Solar Incentive (CSI) Program, which will set annual targets based on budget availability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/new-jersey-initiates-first-phase-of-ambitious-energy-storage-expansion-program/
