New Jersey Closes 645 MW Energy Storage Procurement as State Targets October Awards
New Jersey closed bidding August 7 for the second tranche of its Garden State Energy Storage Program, seeking 645 MW of transmission-scale storage as the state works toward a 1,000 MW initial procurement goal.
Published · Updated · 4 min read
The New Jersey 645 MW energy storage procurement closed its final bid window August 7, advancing the second tranche of the Garden State Energy Storage Program as the Board of Public Utilities seeks additional transmission-scale storage for the state’s PJM-connected power system. The procurement matters because it is intended to complete the remaining portion of New Jersey’s initial 1,000 MW storage target after the state awarded 355 MW in the program’s first competitive tranche.
The New Jersey Board of Public Utilities authorized Tranche 2 to solicit 645 MW of qualifying storage capacity, with projects competing for fixed incentive payments distributed over 15 years. The state’s current program schedule identifies October 28 as the target date for a Board decision on the bids submitted before the August 7 deadline.
Tranche 2 seeks the remaining 645 MW of the initial storage target
The New Jersey Clean Energy Program’s Tranche 2 page confirms August 7 as the final bid-submission deadline for the second phase of the Garden State Energy Storage Program.
The Board of Public Utilities order establishing Tranche 2 directs staff and the program administrator to conduct a competitive solicitation for 645 MW of energy storage capacity.
The procurement follows the first tranche, in which the Board approved incentives for three projects totaling 355 MW.
Together, the 355 MW already selected and the 645 MW sought in the second solicitation correspond to the state’s initial 1,000 MW procurement objective.
The first storage awards totaled 355 MW
In March, the New Jersey Board of Public Utilities announced the Tranche 1 awards for three large-scale storage projects.
Woods Landing Storage LLC received an award for a 200 MW project in Sayreville, Middlesex County. Two Rivers Energy Storage LLC was selected for a 150 MW project in Ridgefield, Bergen County, while North America Energy Storage Corp. received an award for a 5 MW project in Bordentown, Burlington County.
The Board said those projects are expected to provide flexible power to the PJM regional grid and estimated that the Tranche 1 awards could generate more than $169 million in ratepayer savings over the life of the program.
That savings figure is an NJBPU analysis rather than a realized result and will depend on project completion, market conditions and actual system performance.
Tranche 2 is designed for transmission-scale storage
The New Jersey 645 MW energy storage procurement is open to qualifying transmission-scale energy storage projects and certain transmission-scale renewable-plus-storage projects that are not eligible for storage incentives through the state’s separate solar incentive framework.
New Jersey defines qualifying transmission-scale storage around projects capable of participating in the PJM system and wholesale electricity markets, subject to the eligibility requirements established for the program.
The storage resources are intended to increase flexible capacity that can respond when electricity is needed rather than depending on the instantaneous availability of an underlying renewable resource.
Battery storage can also shift electricity across hours, charging during periods of lower system stress and discharging when demand and wholesale prices are higher.
Projects compete for 15 years of fixed incentive payments
New Jersey is not directly purchasing or owning the batteries through the Garden State program.
Instead, qualifying projects compete for fixed incentive payments that the Board’s Tranche 2 order says will be distributed over a 15-year period.
The state’s notice of funding availability states that administratively complete applications will be evaluated primarily on bid price, with additional consideration given to community benefits and project-maturity indicators such as interconnection progress and earlier commercial operation dates.
That structure is intended to direct incentives toward projects that combine competitive pricing with a reasonable likelihood of reaching operation.
The October decision will determine how much capacity advances
Closing the bid window does not mean New Jersey has awarded another 645 MW.
NJBPU must evaluate the applications before determining which projects qualify for incentives. The state’s current program materials identify October 28 as the planned date for the Board’s decision on Tranche 2 bids.
The number of proposals received, aggregate capacity offered, bid prices and identities of participating developers had not been publicly disclosed in the materials reviewed immediately following the deadline.
The final awarded capacity could therefore depend on the quality, eligibility and economics of the submitted projects rather than the 645 MW solicitation target alone.
Storage is being positioned as an affordability and reliability resource
New Jersey has tied its storage policy to both grid reliability and electricity affordability.
NJBPU says storage can provide flexible, on-demand capacity to PJM, helping address periods when electricity supply is tight and wholesale capacity costs are elevated.
The program also creates a pathway for batteries to participate directly in regional energy, capacity and ancillary-service markets while being physically located in New Jersey.
Whether the second tranche delivers the expected benefits will depend on which projects receive awards, how quickly they complete interconnection and construction, and how they ultimately perform in PJM markets.
The October award decision should provide the next major indication of how quickly New Jersey can move from a state storage target to a larger operating fleet of dispatchable grid-scale resources.
Jonas Muthoni is Editor-in-Chief of Microgrid Media, where he oversees reporting and analysis on microgrids, energy storage, distributed energy resources, data center power demand, grid modernization, resilience, renewable energy, and electricity policy and markets. His work focuses on the infrastructure, technologies, and regulatory developments reshaping the power system.
As Editor-in-Chief, Jonas leads Microgrid Media’s editorial strategy and standards, including story selection, source verification, technical accuracy, and the development of original reporting and analysis. His coverage draws on regulatory filings, government records, utility and company disclosures, technical documentation, and independent industry sources to explain significant developments across the evolving energy system.
