The New Jersey Board of Public Utilities (NJBPU) has released a proposal for the next phase of its Garden State Energy Storage Programme (GSESP) consisting of approximately 150MW of energy storage capacity in the US state.
Announced 19 August, the NJBPU released a straw proposal for Phase 2, Block 1 of the GSESP. It outlines a design for the GSESP’s “Distributed Storage Capacity Block 1,” which will consist of approximately 150MW of battery energy storage system (BESS) capacity “statewide and provides options to expand new behind-the-meter (BTM) residential battery storage for New Jersey.”
The GSESP looks to deploy 2,000MW of BESS by 2030, following a mandate established by the Clean Energy Act of 2018.
Three BESS projects totalling 355MW were approved under the first round of the GSESP and a second round was opened for bidding, with solicitations being invited for 645MW of additional storage capacity.
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The straw proposal aims to integrate more clean energy resources, lower costs, and improve resilience across New Jersey.
It also complements NJBPU’s broader virtual power plant (VPP) and grid modernisation efforts, the first stage of which is expected to go before the NJBPU in October, by encouraging deployment of residential BESS that can be measured, verified, and dispatched during periods of grid need.
The NJBPU stated that the straw proposal establishes a framework for technologies enabling residents to receive compensation through a performance-based incentive structure by opting into the programme via New Jersey’s electric utilities.
Following enrolment and battery commissioning, residents would be eligible for annual incentive payments over a 10-year period based on performance during dispatch events when the grid requires additional support, such as during heatwaves or cold snaps.
New Jersey’s four electric distribution companies (EDCs) – Atlantic City Electric, Jersey Central Power & Light, PSE&G, and Rockland Electric – would manage battery enrolment, coordinate dispatch, track performance, monitor data, and issue verified incentive payments to residents under Board oversight.
The customer incentive under the straw proposal represents compensation for providing transmission, distribution and capacity grid services, which will reduce utility costs and New Jersey’s exposure to PJM capacity prices.
Board staff also anticipate the straw proposal will serve as a framework for subsequent near-term storage deployment opportunities, including compensation for commercial and industrial (C&I)-scale BTM storage at critical facilities and a separate distribution-connected front-of-meter (FTM) storage initiative.
In June, legislation to create an incentive programme for BTM BESS in New Jersey was advanced in the state’s Senate Environment and Energy Committee.
New Jersey Democratic Senators Bob Smith and Linda Greenstein sponsored Bill S-631, which would establish incentives covering up to 40% of energy storage project costs for systems meeting performance requirements set by the NJBPU.
In March, the NJBPU selected developer and IPP Elevate Renewables’ 150MW/600MWh Garden State Reliability Project, also known as Two Rivers Storage, for development, as part of the GSESP.
The project will be developed in Ridgefield, at the Bergen Generating Station. Elevated stated that the project represents an estimated US$200 million private investment in energy infrastructure in Bergen County, New Jersey.
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