On June 18, 2025, the New Jersey Board of Public Utilities (NJBPU) announced the first phase of the Garden State Energy Storage Program (GSESP), intended to expand the availability of transmission-scale energy storage in the state. Per the requirements of the Clean Energy Act of 2018, GSESP seeks to help the State reach the 2,000 megawatts (MW) of energy storage by 2030 through multiple phases, detailed below.
The GSESP aims to address both rising demand growth and limited generation supply, issues that contribute to consumer rate increases. The GSESP-funded storage capacity will alleviate grid strains and expand the amount of power ready to be deployed on demand.
The program is the result of extensive engagement with industry experts, environmental groups, and public stakeholders. For Phase 1, NJBPU will primarily utilize existing Societal Benefit Charges (SBC) funds from the New Jersey Clean Energy Program (NJCEP) and other settlement funds without raising consumer rates.
- Phase 1 – Transmission-Scale Energy Storage: Through competitive bidding, GSESP will pursue the procurement of 1,000 MW or more of large grid-connected projects.
- Tranche 1: The initial round seeks to allocate between 350 and 750 MW. Pre-qualification began on June 25, 2025, and final bids must be submitted by August 20, 2025. The NJBPU plans to announce Tranche 1 winners by October 31, 2025.
- Tranche 2: The second round, scheduled for the first half of 2026, seeks to procure the additional capacity required to achieve the 1,000 MW Phase 1 goal.
- Phase 2 – Distributed Energy Storage: Expected to begin in 2026, GSESP will prioritize incentives for storage systems linked to local distribution networks.
- A third phase is under evaluation, with potential to offer performance-based incentives specifically for transmission-scale energy storage systems.
Led by the Division of Clean Energy, the New Jersey Clean Energy Program website provides additional information, including application materials.