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Dive Brief:

Customer-sited energy storage devices will be among the assets cleared to participate in a two-year, technology-neutral virtual power plant program administered by electric distribution companies in New Jersey beginning next year, the state Board of Public Utilities said in a straw proposal released on July 15.

The “explicitly transitional” two-year program would evolve into a market-based, open-access VPP tariff from 2029 onward, according to the straw proposal. Where permitted, it would allow batteries and other distributed energy resources to stack payments for distribution-level grid services with PJM Interconnection wholesale market participation payments, the BPU said.

The framework makes New Jersey one of a growing number of states in both restructured and vertically integrated utility markets moving toward open-access VPP programs that allow non-utility companies to aggregate electric vehicles, residential batteries and other small-scale resources.