On Aug. 19, the New Jersey Board of Public Utilities released a proposal for the next phase of the Garden State Energy Storage Program (GSESP).
The so-called straw proposal outlines the proposed design for the GSESP’s “Distributed Storage Capacity Block 1,” which will consist of about 150 megawatts (MW) of energy storage statewide and provide options to expand new behind-the-meter residential battery storage for New Jersey.
“The Garden State Energy Storage Program advances Gov. Sherrill’s Executive Order No. 2 by growing energy storage deployments in-state to meet growing energy demand while improving affordability and resilience,” said NJBPU President Ben Hertz-Shargel. “Public input is essential as we plan for New Jersey’s energy future, and this Straw Proposal gives residents and stakeholders an opportunity to help shape that work.”
This is part of New Jersey’s effort to meet its goal of 2,000 MW of energy storage by 2030. Residential battery storage provides backup power for residents during outages as well as supports the electric grid during periods of high demand or grid stress. Home batteries are safe, reliable tools that can store energy for residents’ use on demand.
The Straw Proposal aims to integrate more clean energy resources, lower costs, and improve resilience across New Jersey’s energy landscape. It also complements NJBPU’s broader Virtual Power Plant (VPP) and grid modernization efforts, the first stage of which is expected to go before the board in October, by encouraging deployment of residential batteries that can be measured, verified and dispatched during periods of grid need.
Additionally, the Straw Proposal lays the foundation for technologies that will empower residents who choose to opt in to the program through New Jersey’s electric utilities to receive compensation through a performance-based incentive structure.
Once a resident enrolls and their battery is operational, they would be eligible to receive annual incentive payments over a 10-year term based on performance during “dispatch events” when the grid needs additional support, such as 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 administer residents’ battery enrollment, coordinate dispatch, track performance, monitor data, and issue verified incentive payments to residents under board oversight.
Crucially, the customer incentive under the Straw Proposal represents compensation for providing key transmission, distribution and capacity grid services, which will reduce utility cost to serve customers and reduce New Jersey’s exposure to capacity prices from grid operator PJM.
Board staff also anticipate the Straw Proposal serving as a framework for subsequent near-term storage deployment opportunities that would provide compensation for Commercial & Industrial-scale behind-the-meter storage at critical facilities as well as a separate distribution-connected front-of-the-meter storage initiative.
The public is invited to participate in a virtual stakeholder meeting to discuss the Distributed Storage Straw Proposal on Sept. 3, from 10 a.m. to 12 p.m. Interested parties can register for the meeting here.
If you are unable to attend the stakeholder meeting, you can still comment on the Straw Proposal. The deadline for written comments is 5 p.m. ET on Sept. 10.
Comments are closed.