Garden State Energy Storage Program – Phase 1 (GSESP)

The Garden State Energy Storage Program (GSESP), administered by the New Jersey Board of Public Utilities (NJBPU), is a landmark energy initiative aimed at bolstering New Jersey’s energy resilience, affordability, and clean energy infrastructure. Formerly known as the New Jersey Storage Incentive Program (NJ SIP), GSESP is a multi-phase plan developed in response to the Clean Energy Act of 2018, which mandates the deployment of 2,000 megawatts (MW) of energy storage capacity by 2030. NJBPU, the state's primary utility regulatory agency, launched this initiative following two years of intensive stakeholder engagement involving environmental organizations, industry professionals, and community advocates. Phase 1 of GSESP focuses on large-scale, transmission-level energy storage infrastructure. It will competitively procure at least 1,000 MW of energy storage projects, with Tranche 1 targeting between 350–750 MW. Pre-qualification for Tranche 1 begins on June 25, 2025, and the final bid submission deadline is August 20, 2025. Awards for Tranche 1 are expected to be announced by October 31, 2025. A second solicitation (Tranche 2) will be issued in the first half of 2026 to meet the remaining capacity requirement. Phase 2, launching in 2026, will support smaller, distributed energy storage systems connected to local distribution grids, including both grid-connected and behind-the-meter systems. A possible Phase 3, still under evaluation, may offer performance-based incentives for transmission-scale systems. GSESP is designed to address several critical needs simultaneously: mitigating rising electricity costs, compensating for insufficient energy capacity, and facilitating the transition to renewable energy. By providing dispatchable capacity that can be rapidly deployed, energy storage systems under this program will strengthen the electric grid and lower wholesale electricity costs. These systems can be implemented faster than traditional power plants, helping to address supply chain constraints and the inability to construct conventional plants within short timeframes. Phase 1 will be funded through the New Jersey Clean Energy Program (NJCEP) budget without increasing consumer electric rates. One of the distinguishing features of GSESP is its commitment to equity and environmental justice. The program incentivizes projects that benefit overburdened communities and promotes the redevelopment of brownfields. Environmental and public health benefits are central to the program’s design, with storage deployment expected to reduce greenhouse gas emissions and improve air quality across the state. The economic impact is also significant, with the program expected to attract investment, create jobs, and modernize New Jersey's grid infrastructure. To participate in Tranche 1, applicants must complete the pre-qualification process starting June 25, 2025. Application materials will be made available on the NJ Clean Energy Program website. Although specific eligibility criteria were not detailed in the press release, the NJBPU encourages a range of stakeholder participation and is expected to provide full criteria in the application materials. There is no indication that a match is required for this funding. Interested applicants can direct questions to the program’s official email address, energy.storage@njbpu.nj.gov, or contact Alonza Robertson at 212-920-1679. The GSESP reflects the Murphy Administration’s dedication to building a clean, reliable, and equitable energy future for New Jersey. Its clear structure, phased approach, and comprehensive stakeholder engagement strategy make it a pivotal effort in the state’s transition to sustainable energy. As part of a broader push to improve affordability, reliability, and environmental outcomes, this program stands as one of the most substantial investments in grid-scale energy storage in New Jersey history.