New Jersey Launches Energy Storage Program to Lower Long-Term Costs
TRENTON, N.J. — New Jersey is going all in on energy storage. The recently announced New Jersey Storage Incentive Program is designed to significantly expand the amount of grid-scale energy storage capacity in the state.
“The program addresses demand growth and limited supply, the root causes of recent rate increases, while also building a major part of the state’s clean energy future,” according to the New Jersey Board of Public Utilities.
“This is a pivotal moment for New Jersey’s energy landscape,” said NJBPU President Christine Guhl-Sadovy.
“The Garden State Energy Storage Program is part of our commitment to addressing the causes of rising electric rates, ultimately putting more money back into the pockets of New Jersey families. This isn’t just about meeting our climate goals, it’s about making sure every family can afford to keep their lights on and their home comfortable,” she said in a written statement.
GSESP is a multi-phase program designed to deploy 2,000 megawatts of energy storage by 2030, a mandate established by the Clean Energy Act of 2018. Energy storage systems are crucial for integrating intermittent renewable energy sources like solar, strengthening grid resilience against outages and reducing carbon emissions.
Two years of extensive stakeholder engagement went into forging the program, incorporating valuable feedback from a wide range of industry experts, environmental groups and public representatives.
Energy storage systems can be built and connected to the power grid faster than any other type of power plant that can turn on when needed.
GSESP rapidly addresses the lack of capacity—one of the root causes of New Jersey’s energy conundrum and reduces long-term electricity costs through improved system efficiency.
Phase 1 of the program will help New Jersey quickly add these new energy storage systems to the grid. By bringing more energy storage online, especially during times of high electricity demand, GSESP will help increase the overall supply of power that can be dispatched when needed. This increased supply is expected to mitigate wholesale electricity costs, which are a significant component of electric bills.
Moreover, the NJBPU plans to use existing funds for Phase 1 of the program without increasing rates for consumers, meaning there will be no new or increased charges added to ratepayers’ current electric bills for this program’s initial phase. Specifically, Phase 1 of the initiative will be funded primarily through the New Jersey Clean Energy Program budget.
“We hear the concerns of New Jersey residents regarding the reliability of our energy infrastructure, and we take that responsibility very seriously,” Guhl-Sadovy said.
“By strategically investing in energy storage now, we’re building a resilient system that can better withstand both man-made and weather-related disruptions and support the critical integration of more clean energy, which is vital for New Jersey’s sustainable future and peace of mind.” she added.
The program also includes incentives for projects that provide benefits to overburdened communities and encourages redevelopment of brownfields, aligning with the state’s equity and environmental justice priorities.
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