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A 5267

Requires BPU to procure and incentivize transmission-scale energy storage.

2024-2025 Regular Session Introduced by Dave Bailey and 13 co-sponsors

New Jersey law now requires utility regulators to procure and incentivize transmission-scale energy storage to stabilize the grid as renewable energy adoption increases.

Approved P.L.2025, c.136.
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Bill Summary · A 5267

Legislative bill overview

Bill A 5267 requires New Jersey's Board of Public Utilities (BPU) to procure and incentivize large-scale energy storage systems connected to the electrical transmission network. The bill was signed into law in August 2025 after passing both chambers with bipartisan support, establishing a framework for developing battery storage and other energy storage technologies at utility scale.

Why is this important

Transmission-scale energy storage addresses a critical infrastructure challenge: storing electricity when renewable sources like solar and wind produce excess power, then releasing it during peak demand or low production periods. This technology is essential for grid reliability as New Jersey transitions toward its 2050 carbon neutrality goals and integrates more intermittent renewable energy sources.

Potential points of contention

  • Cost allocation: Determining how procurement and incentive costs are distributed among ratepayers, potentially increasing electricity bills for consumers
  • Technology selection: Debates over which storage technologies (lithium-ion batteries, compressed air, flow batteries, etc.) the BPU should prioritize and whether mandates favor certain companies
  • Land use and siting: Large energy storage facilities require significant space, raising concerns about environmental impact, property rights, and competing land uses in densely populated New Jersey

Compiled from official sources — confirm details with the bill’s official record.

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