Maryland conditionally approves 440MW of BESS for state ‘Capacity Credit’ awards

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Maryland has conditionally selected two transmission-connected energy storage projects to receive Energy Storage Capacity Credit awards in the US state.

Announced 1 October, the Maryland Public Service Commission (MPSC) conditionally selected the battery energy storage system (BESS) projects to receive Energy Storage Capacity Credit awards during the first round of the state’s Next Generation Energy Act procurement.

The selected projects are the 400MW Chalk Point Storage Project in Aquasco, Price George’s County, and the 40MW Jade Meadow III Battery Storage Project in Barton, Garret County.

Together, the BESS projects would provide 440MW of potential energy storage capacity with 4-hour durations under flat, 15-year award terms, subject to the MPSC’s approval conditions and obligations.

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The MPSC highlighted that the combined estimated cost of the two selected projects is US$0.0698-per-month for a typical Maryland residential customer.

The Next Generation Energy Act was signed into law by Maryland Governor Wes Moore on 20 May 2025. It looks to boost local power generation and BESS, while also reducing costs for consumers by restricting utility spending of ratepayer funds.

The bill directs the MPSC to conduct at least two solicitations for a cumulative 1,600MW of front-of-the-meter (FTM), transmission-connected BESS with a minimum 4-hour duration. The first solicitation, seeking 800MW, was issued through a Request for Applications on 24 December 2025.

The MPSC had to decide whether to approve one or more proposals by 1 October 2026. The MPSC stated that five applicants submitted proposals during Round 1. The Commission was assisted by its consultant, Power Advisory LLC, during the process.

They found all five applications administratively complete and eligible for consideration, then evaluated and ranked them using qualitative and quantitative criteria, including the consideration of cost-effectiveness and potential ratepayer impacts. Two applicants — the 300MW Fourth Quarter Battery Energy Storage System project in Montgomery County and the 135MW Pulaski Energy Storage Project in Baltimore County — subsequently withdrew from consideration.

Following a public hearing on 30 July 2026, and evidentiary hearings with multiple stakeholders from 4-6 August, the MPSC identified the Chalk Point and Jade Meadow III BESS projects as the most cost-effective and highest-ranked proposals from the remaining applications.

The Chalk Point Storage Project will be situated at the current Chalk Point power plant location. The Jade Meadow III Battery Storage Project comprises a hybrid solar-and-storage facility on a former coal mine site in Western Maryland.

MPSC declined to approve 500MW Oystercatcher Energy Storage Project

The Commission declined to award the 500MW Oystercatcher Energy Storage Project in Harford County during Round 1 based on its lower ranking and concerns regarding cost-effectiveness and ratepayer implications.

Nevertheless, the MPSC acknowledged the project’s favourable grid location and characteristics, encouraging the applicant to participate in Round 2. The Commission also emphasised the importance of ongoing stakeholder engagement in Harford County should the project advance.

The MPSC rejected Chalk Point’s request to increase capacity from 400MW to 535MW for Round 1, as the revised proposal was submitted after the application deadline and did not undergo competitive evaluation. Chalk Point may resubmit the expanded proposal in Round 2.

Both the Chalk Point Storage and Jade Meadow III Battery Storage projects must now seek construction approval from the MPSC, requiring additional public and evidentiary hearings addressing non-financial considerations including safety, siting, and environmental impacts.

The MPSC will advance the Energy Storage Capacity Credit awards process through its Round 2 solicitation, with a Request for Applications to be issued by 1 January 2027.

Land & Liberty Coalition, an offshoot of the Conservative Energy Network advocacy group, welcomed the selection of the two BESS projects. Land & Liberty Coalition state director for Maryland Adam Dubitsky said that while the group would have liked to see all three approved, the decision taken was “an important step toward a more reliable, resilient and cleaner grid.”

“These awards will provide greater revenue certainty and help make 440MW of new energy storage financeable in Maryland. The PSC took the time to evaluate these applications on their merits, including cost-effectiveness and ratepayer impacts,” Dubitsky said.

“That’s exactly how the process should work – decisions based on facts and the strength of the applications, not misinformation and out-of-context claims amplified on social media.”

Maryland Governor Wes Moore also launched a fund to invest US$70 million in local solar and BESS projects. The Solar and Energy Storage Gap Financing Programme was established under the Lower Bills and Local Power Act, part of a legislative effort to improve energy affordability in the state.

In August 2025, Moore announced a US$2 million initiative to fund the purchase and installation of BESS to support statewide growth of the technology through the Residential and Commercial Energy Storage Programme (RCES).

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