The basics:

• Atlantic City Electric proposes 500-MW battery storage facility in Salem County
• Project could power about 400,000 homes during peak demand
• Utility says no customer bill impact for first five years
• NJBPU approval required before targeted 2030 completion

Atlantic City Electric has filed a proposal with the New Jersey Board of Public Utilities to build a 500-megawatt battery energy storage facility in Salem County. The utility says the project would help reduce rising electricity costs, strengthen grid reliability and improve South Jersey‘s energy supply.

If approved, Atlantic City Electric would build the battery storage system on property it owns. According to ACE, it would have the capacity to power approximately 400,000 homes during periods of peak electricity demand.

The company said the project would store electricity when demand is lower and deliver it back to the grid during periods of high demand. The plan seeks to help reduce pressure on the regional electric system while providing a more resilient in-state energy supply.

Atlantic City Electric said customers would not see any bill impact from the project during the first five years after it becomes operational. The proposal is subject to NJBPU review and approval, with completion currently targeted for late 2030.

“This project is a direct response to the energy supply challenges facing our region,” said Atlantic City Electric Region President Andrew Hendry. “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.”

Electrified demand

The utility said the proposal complements New Jersey’s Garden State Energy Storage Program and would help accelerate the state’s long-term energy storage goals while providing customer and system benefits. The company emphasized that the project would undergo a rigorous review by NJBPU to demonstrate its value for customers before receiving approval.

Atlantic City Electric plans to develop and construct the facility in partnership with Invenergy, which the company touted as North America’s largest privately held developer, owner and operator of power infrastructure.

Across the PJM region, Invenergy has developed 35 energy projects totaling more than 7,400 MW, including battery storage, solar, wind and natural gas facilities.

The proposal comes as New Jersey and the broader PJM region continue to experience increasing electricity demand while power generation struggles to keep pace, as NJBIZ has extensively reported on. ACE says those conditions have contributed to higher wholesale electricity prices and concerns about maintaining enough energy supply during peak demand periods. The utility also noted that New Jersey imports nearly half of the electricity it consumes.

The company said its average residential customer’s monthly electric bill has increased by approximately $40 since 2024, with 86% of that increase attributed to higher PJM energy supply costs. Atlantic City Electric noted that it does not generate electricity and does not profit from energy supply charges.

All of the above

“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,” Hendry said. “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.”

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.
– Andrew Hendry, region president, Atlantic City Electric

According to the utility, federal investment tax credits and revenue generated through participation in PJM wholesale energy markets are expected to offset nearly 70% of the project’s total cost over time. In addition to helping shield customers from future price volatility, Atlantic City Electric said the battery storage system would improve reliability during periods of high demand and reduce dependence on volatile wholesale energy markets.

Atlantic City Electric serves approximately 572,000 customers throughout South Jersey. It said the proposed battery project is part of its broader “all of the above” strategy to modernize the electric grid, strengthen reliability and address New Jersey’s evolving energy needs.

The proposal also aligns with Gov. Mikie Sherrill’s energy agenda, which has made expanding battery energy storage a priority to strengthen grid reliability, increase in-state energy resources and help stabilize electricity costs. The project now heads to the New Jersey Board of Public Utilities for regulatory review.

Atlantic City Electric said it will continue working with local communities, stakeholders and state officials as the project moves through the regulatory process