New Jersey Launches Innovative Energy Storage Program to Reduce Costs and Enhance Grid Reliability

The New Jersey Board of Public Utilities (NJBPU) approved Phase 1 of the Garden State Energy Storage Program (GSESP) on June 19, 2025. This significant initiative, previously called the New Jersey Storage Incentive Program (NJ SIP), aims to substantially increase grid-scale energy storage capacity in New Jersey. The program addresses the challenges of rising demand and limited supply, which have contributed to recent rate increases, while also playing a critical role in shaping the state’s clean energy future.

“This is a pivotal moment for New Jersey’s energy landscape,” stated NJBPU President Christine Guhl-Sadovy. “The Garden State Energy Storage Program reflects our commitment to tackling the factors behind rising electric rates, ultimately putting more money back into the pockets of New Jersey families. This initiative is not only about achieving our climate goals but also ensuring that every household can afford to maintain their lights and comfort,” she emphasized.

The GSESP is a multi-phase program that aims to deploy 2,000 megawatts (MW) of energy storage by 2030, as mandated by the Clean Energy Act of 2018. Energy storage systems are essential for integrating intermittent renewable sources like solar energy, enhancing grid resilience against outages, and lowering carbon emissions. This program is the result of two years of extensive stakeholder engagement, incorporating insights from industry experts, environmental groups, and public representatives.

Energy storage systems can be constructed and connected to the power grid more swiftly than traditional power plants, making this approach particularly vital given supply chain issues that hinder the construction of natural gas or nuclear facilities within a five-year timeframe. The GSESP aims to quickly address capacity shortages—one of the key factors contributing to New Jersey’s energy issues—while also reducing long-term electricity costs through enhanced system efficiency.

Phase 1 of the program will facilitate the rapid addition of new energy storage systems to the grid. This increased capacity is expected to alleviate the high costs that have been driving up electricity bills, supporting state efforts to keep rates affordable for consumers. By adding more energy storage, particularly during peak demand times, the GSESP will enhance the overall power supply, potentially lowering wholesale electricity costs, which are a significant portion of electric bills.

Importantly, the NJBPU plans to fund Phase 1 with existing resources, ensuring that there will be no new or increased charges for consumers in this initial phase. Funding will primarily come from the New Jersey Clean Energy Program (NJCEP) budget.

“We understand the concerns of New Jersey residents regarding the reliability of our energy infrastructure, and we take that responsibility very seriously,” Guhl-Sadovy remarked. “The Garden State Energy Storage Program is designed with a clear goal: to create a more reliable and robust grid for the people we serve, ultimately leading to greater cost savings. By strategically investing in energy storage now, we are building a resilient system capable of withstanding disruptions and enhancing the integration of clean energy vital for New Jersey’s sustainable future.”

### Program Benefits: Enhanced Reliability and Long-Term Value

The GSESP offers several immediate and long-term benefits:
– **Grid Modernization**: The program will add crucial capacity to the grid, contributing to a more efficient energy infrastructure.
– **Economic Boost**: GSESP is expected to stimulate New Jersey’s economy by attracting investment in new infrastructure, modernizing the grid, improving reliability, reducing environmental impact, enhancing public health, and creating new jobs.
– **Enhanced Reliability and Resilience**: By quickly bringing more dispatchable capacity online, the program will strengthen the electric grid against disruptions and extreme weather events.
– **Environmental Impact and Public Health**: Expanding energy storage will help reduce greenhouse gas emissions, improve air quality, and enhance public health outcomes for all New Jersey communities.
– **Achieving State Mandates**: GSESP is a central component of the Murphy Administration’s strategy to meet the Clean Energy Act’s goal of deploying 2,000 MW of energy storage by 2030.
– **Ratepayer Benefits**: Phase 1 will be funded without raising rates, meaning no new charges will appear on electric bills for this initial phase. Over time, these energy storage projects are expected to decrease electricity costs by supplying power during peak demand periods when prices are typically elevated.

The program will also feature incentives for projects that benefit overburdened communities and promote the redevelopment of brownfields, aligning with the state’s equity and environmental justice priorities.

### Key Program Components

The GSESP is a comprehensive initiative comprising multiple phases:
– **Phase 1: Transmission-Scale Energy Storage** will strategically procure at least 1,000 MW of larger projects directly connected to the main power grid through competitive bidding. The first solicitation aims to award 350-750 MW, with the pre-qualification process starting on June 25, 2025, and a final bid submission deadline of August 20, 2025. The NJBPU expects to announce awards for this tranche by October 31, 2025. A second solicitation will follow in the first half of 2026 to secure the remaining capacity for Phase 1.
– **Phase 2: Distributed Energy Storage** is anticipated to launch in 2026, focusing on incentives for smaller energy storage systems connected to local distribution grids.
– A potential **Phase 3** may introduce performance-based incentives for transmission-scale systems, but this phase is still under evaluation.

To ensure responsible and effective deployment that maximizes value, the GSESP includes robust safeguards and clear project development milestones. For more information about the Garden State Energy Storage Program, including eligibility criteria, application processes, and program details, please visit the New Jersey Clean Energy Program website at [www.njcleanenergy.com/storage](http://www.njcleanenergy.com/storage). Application materials will be available by June 25. For program-related inquiries, you can email energy.storage@njbpu.nj.gov.