New Jersey launches phase one of energy storage expansion programme

June 23, 2025
LinkedIn
Twitter
Reddit
Facebook
Email

The New Jersey Board of Public Utilities (NJBPU) has approved a programme to “significantly” expand the amount of grid-scale energy storage capacity in the state.

The NJBPU approved the first phase of the Garden State Energy Storage Programme (GSESP), which looks to deploy 2,000MW of energy storage by 2030, following a mandate established by the Clean Energy Act of 2018.

Notably, the NJBPU said that the speed at which energy storage systems (ESS) can be built is crucial, as the state cannot build “traditional” power plants within five years due to supply chain issues.

Phase one of GSESP is to quickly add new ESS to the New Jersey grid to help bring down electricity bills by mitigating wholesale electricity costs.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The NJBPU says that phase one will be primarily funded by the New Jersey Clean Energy Programme (NJCEP) budget.

GSESP is designed to offer several benefits, including modernising the state’s electrical infrastructure, boosting the economy through new jobs and investment, reducing environmental impact, and ultimately lowering electricity costs without initially raising consumer rates.

GSESP also offers incentives for initiatives that support overburdened communities and promote the redevelopment of brownfields.

Currently, the programme includes two phases with a potential third. Phase 1 is divided into two parts.

First, a solicitation aims to award 350-750MW, with a pre-qualification process beginning on 25 June. The final bid submission deadline is 20 August.

Next, a second solicitation will be prepared for the first half of 2026 to secure the remaining capacity needed to reach the 1,000MW phase one target.

Phase two, ‘Distributed Energy Storage,’ is expected to begin in 2026. This phase will provide incentives for smaller ESS connected to local distribution grids.

The potential phase three may introduce a performance-based incentive for transmission-scale systems, but it is still being evaluated.

New Jersey’s energy storage deployment has been historically slow.

The NJBPU previously proposed policies to incentivise standalone ESS deployment in 2022.

In 2024, a bill advanced through the state’s legislature to create a pilot programme to incentivise ESS deployments.

That bill more specifically looked to provide monetary incentives to installers of ESS.

As outlined in the 2024 New Jersey Energy Storage Incentive Program Straw Proposal, New Jersey’s 2,000MW target will mostly be achieved through the New Jersey Storage Incentive Plan (SIP) and the Competitive Solar Incentive (CSI) Program, which will set annual targets based on the budget availability.

24 March 2026
Dallas, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2026!
6 October 2026
Warsaw, Poland
The Energy Storage Summit Central Eastern Europe is set to return in September 2025 for its third edition, focusing on regional markets and the unique opportunities they present. This event will bring together key stakeholders from across the region to explore the latest trends in energy storage, with a focus on the increasing integration of energy storage into regional grids, evolving government policies, and the growing need for energy security.

Read Next

December 5, 2025
Developer BrightNight and independent power producer (IPP) Cordelio Power have announced financial close of the 200MW/800MWh Greenwater battery energy storage system (BESS) in Washington state, US.
December 4, 2025
RWE Clean Energy has commissioned the Stoneridge Solar PV project in Texas, adding 200MW of solar PV and 100MW/200MWh BESS to its operational portfolio.
Premium
December 4, 2025
A subsidiary of utility Northern Indiana Public Service Company (NIPSCO) has struck a deal with Amazon to construct 3GW of new dispatchable capacity, with the aim of serving the tech company’s planned data center expansion.
December 4, 2025
PJM has awarded 23 battery energy storage system (BESS) resources, totalling 2.2GW, with interconnection agreements (IAs) in its first transition cycle (TC1) of the reformed interconnection process.
December 4, 2025
Jason Beer of Fluence Australia, discusses some energy trends in Australia that are set to influence the development of the storage market.