In July, we published an article outlining the details of New Jersey’s Phase 1, Tranche 1 solicitation under the state’s Garden State Energy Storage Program (GSESP). At the time, the program was still in the solicitation stage. Governor Phil Murphy officially signed A5267 into law on August 22, 2025, formally launching the program and confirming the state’s commitment to building out large-scale storage projects. This milestone underscores the urgency of deploying storage projects that can deliver long-term reliability benefits to the bulk electric system. Read on to learn more about NJ A5267.
What A5267 Means for Storage Developers
While our July article covered the technical requirements and timeline for Tranche 1 bids, the signing of A5267 into law provides additional clarity for market participants.
2 GW Target Confirmed: The law solidifies New Jersey’s goal of deploying 2 GW of bulk storage by 2030.
Multi-Phase Program Design: GSESP is now officially structured as part of a multi-phase plan, with Phase 1 focused on transmission-scale projects and Phase 2 targeting distribution-scale and behind-the-meter storage.
Cost Emphasis: While policymakers framed the program as a climate solution, its emphasis is on combating rising electricity rates by reducing reliance on expensive peak generation plants and improving overall system reliability.
This formal launch of New Jersey’s GSESP provides developers with the much-needed clarity about the program’s requirements and financial incentives. Now, developers can plan financing around 15-year fixed contract revenue, and the law also redefined transmission-scale storage to be any projects that are 5 MW or greater, meaning smaller distribution-connected storage projects now have the opportunity to participate in both procurement phases. Furthermore, the 90% availability requirement highlights the state’s focus on rewarding projects that are reliable and dispatchable. This bill represents a clear roadmap for storage developers in NJ.
Ready to Compete in Tranche 1?
SYSO partners with leading storage developers to unlock long-term value in PJM and beyond. If you have a transmission-connected BESS project in development, our team can help you prepare, bid, and operate with confidence.
SYSO’s Perspective
We see the formal launch of this program as a watershed moment for storage development in New Jersey. The signing of A5267 solidifies the state as one of the most attractive storage markets within the PJM footprint. Developers who are able to act quickly and strategically will be best positioned to capture these incentives. SYSO continues to support developers and asset owners in New Jersey with:
Bid Strategy and Modeling: Our analytics experts can support modeling of revenue streams tailored to the unique characteristics of each project.
PJM Registration and Compliance Support: Our team helps storage developers bring their projects to fruition and ensures asset readiness when deployed.
24/7 Operational Oversight: We help our clients meet strict availability requirements in NJ through our 24-hour network operations center (NOC).
We are ready to help you succeed in the GSESP. Contact our team today to align your project strategy with this newly launched program.