NJ A5267

Board of Public Utilities must establish a program to procure and provide incentive awards for transmission-scale energy storage systems (at least 5 MW AC capacity) interconnected with the PJM Transmission Network in New Jersey

Program requires procurement of at least 1,000 MW AC in installed capacity by June 30, 2026, with at least 350 MW AC approved in Tranche 1 by December 31, 2025 and remaining capacity in Tranche 2

Incentive awards consist of fixed annual payments over a 15-year award period, with eligible projects required to have anticipated commercial operations by December 31, 2030

Creates the "Energy Storage Fund" with minimum $60,000,000 annual deposits from societal benefits charges and other sources (including federal funding) to pay for incentive awards

Developers must provide pre-development security of up to $100,000 per megawatt (maximum $10,000,000 total) and meet performance requirements including minimum availability hours for dispatch