Phase 1 will fund up to 1,000MW of grid-scale storage through a competitive process, utilizing the New Jersey Clean Energy Program budget without increasing consumer rates. The program follows two years of stakeholder engagement to ensure effective implementation. NJBPU president Christine Guhl-Sadovy stated: “This is a pivotal moment for New Jersey’s energy landscape. 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.”
The first phase is divided into two tranches. Tranche 1, launching on 25 June 2025, will allocate 350–750MW, with bids due by 20 August and awards expected by 31 October 2025. Tranche 2, planned for early 2026, will complete the 1,000MW target. Phase 2, set to begin in 2026, will focus on distributed energy storage, supporting both front- and behind-the-meter systems through fixed and performance-based incentives. A potential third phase, currently under review, would introduce performance incentives for transmission-scale systems.
Guhl-Sadovy emphasized the program’s broader benefits, saying: “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 added: “By strategically investing in energy storage now, we’re building a resilient system that can better withstand both man-made and weather-related disruptions.”
The initiative prioritizes projects in overburdened communities and the redevelopment of brownfield sites, aligning with New Jersey’s equity and environmental justice objectives. The NJBPU highlighted that the program will create jobs, improve public health, and reduce greenhouse gas emissions, contributing to a more sustainable and resilient energy system.
By advancing energy storage, New Jersey aims to strengthen its grid, lower long-term costs, and support a cleaner energy future, benefiting residents and businesses across the state.
