As electricity demand surges across the Mid-Atlantic—driven by data centers, electrification, and rising summer temperatures—energy storage is increasingly essential for a reliable grid. When demand peaks during late afternoons and evenings, energy storage helps stabilize the system by supplying power exactly when it is most needed. It can also enhance the performance of existing generation resources and reduce the need for more expensive generation sources. Battery storage is flexible, fast-responding, and affordable.
PJM Warns of Shortfalls, States Step Up
PJM Interconnection—the regional grid operator for 13 states and Washington, D.C. — has warned of possible electricity shortfalls as soon as 2026 due to a combination of load growth, fossil fuel plant retirements, and delays in bringing new projects online. PJM’s interconnection queue is now 87 percent renewable; stand-alone energy storage comprises 30 percent and solar paired with storage another 11 percent. In response to the PJM warning and the queue, states like Maryland and New Jersey are launching storage procurement programs to accelerate near-term deployment of clean energy projects.
Why are States Choosing Storage?
States are choosing battery storage for a few reasons:
- Cost: Energy storage is cheaper than other generation sources. For example, according to Lazard’s most recent 2025 Levelized Cost of Energy report, the cost of a new combined-cycle gas plant is at a 10-year high—driven by supply chain issues, rising material prices, and longer construction timelines.
- Speed and Flexibility: Storage projects are quicker to deploy and more adaptable than other generation sources, especially in the near term. Costs for battery storage—both stand-alone and paired with renewables—are falling.
- Capacity Value: Storage delivers firm capacity and grid reliability, often at a lower cost.
Examples of State-Led Leadership
It is in states’ interests to create programs that bring energy storage projects out of PJM’s interconnection queue and online quickly, and several states are leading the way.
- Maryland passed the Next Generation Energy Act in May 2025. The law establishes a transmission-connected energy storage program that will procure 1,600 MW of capacity—split between two 800 MW rounds in 2026 and 2027. Projects will be competitively selected and supported by a fixed performance credit based on their grid and environmental benefits.
- New Jersey launched the Garden State Energy Storage Program, with two upcoming procurement rounds: 350–750 MW by December 2025 and at least 1,000 MW by June 2026. Like Maryland, New Jersey’s program focuses on transmission-connected projects that can be built quickly to boost grid reliability.
What is in the PJM Queue?
There is already significant storage capacity stuck waiting in line in PJM with signed interconnection agreements:
- 590 MW planned for 2026
- 677 MW for 2027
- 1,045 MW for 2028
- 1,040 MW for 2029
These projects are ready to move—but they need a procurement pathway to reach commercial operations. Maryland and New Jersey’s leadership offers a blueprint for other states in PJM.
MAREC Action supports continued state leadership to accelerate energy storage deployment. Doing so will:
- Strengthen grid reliability,
- Reduce consumer costs,
- And help meet PJM’s capacity needs with cleaner, more flexible resources.
We encourage more states to follow Maryland and New Jersey’s lead – putting shovels in the ground to move long-delayed projects forward. This momentum is key to keeping our grid resilient, our economy growing, and our energy affordable.
** For more details on energy storage in PJM please check out our recent fact sheet. **