Atlantic City Electric has filed a proposal with the New Jersey Board of Public Utilities (BPU) to develop a battery energy storage system in South Jersey, a critical investment designed to support affordability, strengthen grid reliability, and help address the regional energy supply challenges driving higher electricity costs for customers.
The proposed project would add up to 500 megawatts of battery energy storage capacity on Atlantic City Electric-owned property in Salem County. With the ability to power approximately 400,000 homes, the project would represent a significant investment in critical electric grid infrastructure for South Jersey. By storing electricity and delivering it during periods of high demand, the battery energy storage system will protect customers from rising energy market prices and lower energy costs while improving grid reliability and ensuring a more resilient and dependable in-state power supply. Customers will not see any bill impact for the first five years after the project becomes operational.
“This project is a direct response to the energy supply challenges facing our region,” said Andrew Hendry, region president for Atlantic City Electric. “For years, we’ve talked about the need for more energy resources as demand continues to grow and supply becomes increasingly constrained. Now we are stepping up to take action to address this challenge. Battery storage is a practical solution that can be deployed quickly to help manage rising energy costs for customers, strengthen reliability, and support the grid during periods of peak demand.”
New Jersey has taken a proactive step toward strengthening its energy future through the state’s Garden State Energy Storage Program solicitation, recognizing the important role energy storage can play in supporting affordability, improving reliability and enhancing grid resilience. Atlantic City Electric’s proposal would be additive to these efforts and complementary to the competitive process in place, providing an opportunity to accelerate progress toward New Jersey’s long-term energy storage goals while delivering broad customer and system benefits. The proposal would also be subject to rigorous review and approval by the BPU, ensuring strong oversight and a clear demonstration that the project delivers value for Atlantic City Electric customers.
The battery storage system would be developed and constructed in partnership with Invenergy, North America’s largest privately-held developer, owner and operator of innovative, reliable power infrastructure. Across the PJM region, Invenergy has successfully developed 35 energy projects, totaling over 7,400 megawatts spanning battery storage, solar, wind, and natural gas technologies. With more than a decade of experience developing, constructing, and operating battery energy storage facilities, Invenergy brings the expertise needed to safely, reliably, and cost-effectively deliver the project. Pending regulatory approval, the project is currently targeted for completion in late 2030.
Atlantic City Electric’s proposal comes at a pivotal time for New Jersey’s energy future. Across New Jersey and the broader PJM region, electricity demand is rising while power generation resources are struggling to keep pace. These conditions have contributed to increasing wholesale energy prices and growing concerns about having sufficient energy supply available during periods of peak demand. As New Jersey continues to import nearly half the energy it uses, policymakers, regulators, and other stakeholders have rightfully acknowledged that addressing higher energy costs requires more in-state energy resources.
Since 2024, the typical Atlantic City Electric residential customer’s monthly bill has increased by approximately $40, with 86 percent of that increase attributable to rising PJM energy supply costs. While Atlantic City Electric does not generate electricity and does not profit from supply charges, the company is committed to advancing solutions that can help address the underlying energy supply challenges driving higher costs for customers.
“This summer’s heat waves have highlighted the challenges facing the regional power grid as electricity demand has surged across New Jersey and the broader PJM region,” added Hendry. “PJM has had to take extraordinary steps to ensure sufficient energy was available to meet customer demand, reinforcing the urgent need for additional energy resources. That urgency was reinforced by the latest PJM capacity auction, which fell nearly 7 gigawatts short of the generation PJM says is needed to maintain reliability, illustrating the growing gap between rising demand and available energy supply.”
Helping Keep the Lights on and Manage Customer Costs
The proposed battery storage facility is expected to deliver several important customer benefits, including:
- Customer Benefit: Customers will benefit from receiving federal investment tax credits during the early years of operation and will not see a bill impact for the first five years after the project becomes operational. In addition, revenue generated through participation in PJM wholesale energy markets, combined with federal tax credits, is expected to offset nearly 70% of the project’s cost over time.
- Strengthened Reliability: Additional local energy resources help support grid stability during periods of high demand and system stress, improving reliability, and helping ensure customers have power when they need it.
- Reduced Exposure to Supply Cost Volatility: Increasing available local energy resources can help lessen reliance on volatile wholesale power markets and reduce exposure to price spikes caused by regional supply shortages.
Delivering Safe and Reliable Service Through Local Energy Solutions
Ensuring reliable electric service for customers remains Atlantic City Electric’s highest priority. Every day, the company operates, maintains and strengthens the electric system that serves approximately 572,000 customers across South Jersey. The proposed battery storage project represents another important investment aimed at helping ensure sufficient energy is available when customers need it most.
The project is part of Atlantic City Electric’s broader “all-of-the-above” strategy to help address New Jersey’s evolving energy needs through infrastructure investments, grid modernization efforts and innovative technologies that improve how energy is delivered and used. These efforts are designed to help prevent future energy supply shortfalls, strengthen reliability, and reduce long-term cost pressures for customers.
Atlantic City Electric will continue to engage with local communities, stakeholders and state officials to incorporate feedback and provide opportunities for engagement as the project moves through the regulatory review process.
To learn more about Atlantic City Electric, visit The Source, Atlantic City Electric’s online newsroom. Find additional information by visiting atlanticcityelectric.com, on Facebook at facebook.com/AtlanticCityElectric, and on X, formerly known as Twitter, at twitter.com/AcEleCconnect. Atlantic City Electric’s mobile app is available at atlanticcityelectric.com/MobileApp.
