The New Jersey legislature recently passed a bill (the “Bill”) that would set a goal of reaching 600 megawatts of energy storage capacity by 2021 and 2 gigawatts by 2030.[1] This represents one of the largest energy storage implementation goals in the country and likely signals the coming of a large new market for energy storage.
The Bill requires the Board of Public Utilities (“BPU”), with PJM Interconnection’s consultation, to conduct an energy storage analysis covering a wide range of practical implementation issues for bringing storage onto the grid. This including how to best implement energy storage systems in New Jersey, if any additional technologies need to be deployed and any associated costs for optimal implementation, and how distributed energy resources could be incorporated into electric distribution system effectively.[2] BPU will have one year from enactment of the Bill to submit a report to the Governor and the legislature laying out the analysis results as well as New Jersey’s needs and opportunities with regards to energy storage.[3] Within six months after completion of the report, BPU is then required to initiate a proceeding to establish a mechanism for achieving the goals.[4]
In addition to the new energy storage goals, the Bill would also establish a 50% renewable energy standard by 2030, adopt “Community Solar Energy Pilot Program,” and provide tax credits for certain offshore wind energy projects, among other things.[5]
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Footnotes:
[1] Assembly No. 3723 State of New Jersey, 218th Legislature, introduced March 22, 2018, available at http://www.njleg.state.nj.us/2018/Bills/A4000/3723_I1.PDF (last visited April 19, 2018).
[2] Id. at 1-2.
[3] Id. at 2.
[4] Id.
[5] Id. at 34-36.
