New Jersey has adopted an energy storage goal, becoming the fifth state with some form of energy storage target.
The state’s storage goal is part of a broader legislative effort, A 3723, that was signed into law last week, along with a law establishing a zero emission credit program for nuclear power plants.
The Renewable Energy law requires New Jersey’s Board of Public Utilities to submit a report on energy storage to the governor and legislature within one year. Six months later, the BPU is required to begin work to establish a process and mechanism “for achieving the goal of 600 megawatts of energy storage by 2021 and 2,000 megawatts of energy storage by 2030,” according to a New Jersey Assembly Appropriations Committee statement.
The statement says the report should include ways to increase opportunities for energy storage in the state, including recommendations for financial incentives by public and private entities.
The state’s storage goal is “the most aggressive one I’ve seen,” Navigant Research senior research analyst Alex Eller told Utility Dive.
California set an energy storage target of 1,300 MW by 2020 with the passage of AB 2514 in 2013. Since then, AB 2861 added another 500 MW to the state’s goal. Oregon followed suit in 2015, setting a target of 5 MWhby 2020. Massachusetts passed an energy storage initiative in 2016 and has set its target at 200 MWh. And, until New Jersey’s law, New York was on track to have the most aggressive energy storage target — 1,500 MW by 2030. A regulator on Arizona’s Corporation Commission has proposed a 3,000 MW by 2030, but it has not yet been approved.
“I expect to see many more New Jersey or Arizona-style GW-scale goals, rather than Oregon-style 5 MWh mandates.”
Daniel Finn-Foley
Senior energy storage analyst at GTM Research
The states’ efforts are not directly comparable, however. The time frames vary and some targets, like California’s are mandatory, while other’s like Massachusetts’, are not. And the level of New York’s target is not yet codified but has only been indicated by statements from Democratic Gov. Andrew Cuomo. The various targets do, however, give an indication of how states are stacking up with regard to energy storage policies.
New Jersey’s goal could create momentum for other similar processes across the country. Arizona and Nevada have both passed laws calling for their regulators to investigate energy storage targets. And several other states — including Colorado, Illinois, Indiana, Minnesota, Missouri, New Mexico, Ohio and Vermont — have begun proceedings on energy storage policies.
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