Board Staff and the Market Manager have issued a Second Straw Proposal for the FY2016 Renewable Electric Storage Incentive Program. Public comments on this Proposal may be submitted through 5:00 pm on October 13, 2015. Please check back here periodically for further information.
Renewable Electric Storage Incentive Program
The Renewable Electric Storage Incentive Program provides financial incentives for energy storage systems that are integrated with Class 1 renewable energy projects installed behind-the-meter at customer sites. It seeks to benefit New Jersey ratepayers by supporting the installation of renewable electric storage systems in government, commercial, institutional and industrial entities for the purpose of providing emergency back-up power for essential services, offsetting peak loads by shifting electricity to hours of higher demand and, or helping to stabilize the electric distribution system through the provision of frequency regulation services.
The Program was originally proposed in the Comprehensive Resource Assessment (CRA) for FY2014, which was approved by the Board along with the Renewable Energy Market Manager’s Compliance Filing for FY2014 that detailed the development of an incentive offering through a stakeholder process. Board Staff and the Market Manager began the program development process during FY2014 for implementation in FY2015.
A Renewable Electric Storage Working Group was formed with industry stakeholders and held meetings to discuss the design, timing, process, incentive structure and eligibility criteria for a competitive solicitation. As a result of the discussions at those meeting, the issuance of two straw proposals and written comments submitted by stakeholders, Staff made a recommendation to the Board for an FY2015 Renewable Electric Storage Incentive Solicitation. On October 22, 2014, the Board approved Staff’s recommendation and the following day issued an offering that was structured as a competitive solicitation with a program budget of $3 million.
A total of 22 applications were submitted by the December 8, 2014 application deadline. Following a review for completeness by the Market Manager, the Solicitation Evaluation Committee scored each application on the basis of four criteria categories – Financial and Economic Viability, Project Readiness, Technical Feasibility and Resilience – and then ranked the applications in descending order of their scores. The Committee recommended that the 13 top-ranked applicants receive incentive commitments totaling $2.908 million. The nine remaining applications ranked below the cut-off point for budgeted funds. Staff presented the Committee’s recommendations to the Board, which approved them in an Order dated March 18, 2015.
Staff and the Market Managers subsequently convened stakeholders to discuss the results of the FY2015 solicitation toward the development of an incentive program for FY2016. A straw proposal issued May 7, 2015 can be found here . Following public comments and further discussion at a June 24, 2015 stakeholder meeting, a second straw proposal was issued on September 15, 2015. It can be found here. The second straw was discussed at a September 29, 2015 stakeholder meeting and is open for public comment through October 13, 2015. Staff anticipates making a recommendation to the Board for the FY2016 program at the Board’s November 16, 2015 agenda meeting.
Performance-based Regulation Market in PJM
- Presentation on July 29, 2014 to the NJ Energy Storage Working Group by Eric Hsia, Manager, Performance Compliance
- PJM report "Performance Based Regulation: Year One Analysis"dated 10-12-13. This report addresses the specific impacts that Performance Based Regulation had on PJM operations, markets and settlements.
Please visit the Energy Storage Meeting page for more information.