The New Jersey Board of Public Utilities (NJBPU) has approved phase 1 of the Garden State Energy Storage Program (GSESP). It is a multi-phase program designed to deploy 2,000 MW of energy storage by 2030. The program aims to expand the amount of grid-scale energy storage capacity in New Jersey.
Phase 1 of the program will procure at least 1,000 MW of larger projects directly connected to the main power grid through competitive bidding. The first phase consists of two tranches. The first solicitation aims to award 350-750 MW. The second solicitation will be prepared for the first half of 2026. It will secure the capacity remaining to reach the 1,000 MW target for phase 1 of the program.
Furthermore, the second phase is expected to be launched in 2026. It will focus on incentives for smaller energy storage systems connected to local distribution grids. GSESP may have a potential third phase to introduce a performance-based incentive for transmission-scale systems. The third phase is currently being evaluated.
REGlobal’s Views: This program will provide multiple benefits to the power consumers in New Jersey especially as these storage systems can be installed much faster than conventional coal or gas fired projects. These projects will also help ensure stable demand and supply management in case of any unplanned outages. The program aims to ensure ratepayer benefits, grid modernization, improved power reliability, and help in reduction of emissions.
