NJ BPU Awards $413.6 Million to 355 MW of Battery Storage
- Energy Storage News On-Site Generation & Microgrids
Marin Holt
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- 6 minutes read
- Three battery energy storage projects totaling 355 MW were awarded incentives under the GSESP Phase 1 Tranche 1.
- The total contract value for the awarded projects is approximately $413.6 million over 15 years.
- Woods Landing Storage LLC, developed by Jupiter Power, received a 200 MW award for a project in Sayreville.
- The projects are expected to be operational around 2028 and are projected to save ratepayers over $169 million.
The New Jersey Board of Public Utilities (NJBPU) approved incentives for three large battery storage projects totaling 355 MW on March 5, 2026, the first awards under the Garden State Energy Storage Program (GSESP) Phase 1, Tranche 1. The agency estimates the projects will deliver more than $169 million in ratepayer savings over the life of the program — worth roughly $413.6 million in incentive payments across 15 years, according to Inside Climate News’s tally of the BPU order. The Board paired the awards with a second solicitation for 645 MW more.
What Was Announced
The NJBPU awarded GSESP incentives to three projects totaling 355 MW, slightly above the 350 MW minimum required by state law, the Board said in its March 5, 2026 release. The winners are Woods Landing Storage LLC (200 MW, Sayreville, Middlesex County), Two Rivers Energy Storage LLC (150 MW, Ridgefield, Bergen County), and North America Energy Storage Corp. (5 MW, Bordentown, Burlington County). According to Inside Climate News, Woods Landing would receive $15 million annually, Two Rivers $12.28 million, and North America Energy Storage Corp. $300,000 a year for 15 years — a combined $27.576 million annually, or about $413.6 million over 15 years if all three meet program conditions. Incentive payments draw on existing Societal Benefits Charge funds, so the BPU says no new rate increase is required. The Board simultaneously launched Phase 1, Tranche 2, opening a competitive solicitation for 645 MW of additional storage, which Utility Dive reported alongside a 3 GW community-solar expansion.
Why It Matters
NJBPU President Christine Guhl-Sadovy called solar and battery storage “the fastest and most cost-effective ways to build new electricity generation.” The 355 MW will provide flexible, on-demand power to the PJM regional grid, easing a capacity shortage the Board says has pushed regional electricity prices higher — pressure driven in part by new data center load. Once Tranche 2 closes, New Jersey reaches the 1,000 MW transmission-scale storage target required by law and moves toward the broader 2,000 MW-by-2030 goal cited by both the BPU and Inside Climate News. The Board timed the awards so projects can participate in next year’s PJM Base Residual Auction. Most of the awarded capacity comes from the Woods Landing project, developed by Texas-based Jupiter Power on a former coal-plant site in Sayreville; developer Dan Watson told Inside Climate News the long-term state commitment was “necessary… to finance the project.”
Critical Perspective
The headline $413.6 million figure is a 15-year incentive ceiling, not an up-front capital outlay, and the projected $169 million in ratepayer savings depends on all three projects reaching commercial operation and on PJM capacity prices behaving as modeled — neither is guaranteed. Storage procurements in other states have seen interconnection delays and cost overruns push commissioning past target dates. What capacity factor and dispatch revenue must Woods Landing, Two Rivers, and the Bordentown project achieve for the Societal Benefits Charge funding to pencil out as a net savings rather than a subsidy?
Sources
- NJBPU — Board Approves 355 MW of Battery Storage (March 5, 2026)
- Utility Dive — New Jersey announces 355-MW storage procurement, solicits 645 MW more
- Inside Climate News — New Jersey Turns to Big Batteries as Power Prices Rise
