Energy Storage

What is Energy Storage? 

Energy storage captures energy when it’s available, such as electricity from solar panels during the day, and stores it for later use. It functions like a “battery” – converting electricity into a storable form and then releasing it as needed. This process stabilizes energy demand and supply, particularly with renewable sources. 

MAREC Action advocates for competitive, reliable energy storage systems across PJM. We emphasize energy storage benefits, from integrating renewable resources and reducing environmental impacts to saving customers money and improving grid reliability and resilience.  

Energy storage addresses traditional challenges like resource adequacy and transmission congestion. Energy storage technologies are being paired more frequently with renewable resources, primarily solar, to capitalize on their combined benefits.

Fact Sheet: Download PDF: Energy Storage in PJM

MAREC Action Energy Storage Priorities:  

  • Increase storage deployment to reduce transmission congestion 
  • Allow renewable energy developers to own storage as a front of the meter transmission asset 
  • Include policies for support of long –duration energy storage (greater than 4-6 hours) 
  • Educate and advocate for market rules for solar-storage hybrid resources

Within the PJM footprint, three states have set goals for energy storage deployment: New Jersey, Virginia, and Maryland. In addition, in July 2025, Delaware passed a resolution for an energy storage study and a series of pilot projects. 

New Jersey: New Jersey enacted their Clean Energy Act in 2018, which set a target of 2,000 MW of energy storage by 2030. The state issued rules on November 12, 2024, and in June 2025, New Jersey launched the Garden State Energy Storage Program. The New Jersey General Assembly passed SB 4289 launching two procurements: 350-750 MW by October 2025, and at least 1,000 MW by June 2026.

On March 4, 2026, the New Jersey Board of Public Utilities announced the first project awards under the Garden State Energy Storage Program, selecting 355 MW of battery storage across three projects. Throughout the policy development process, MAREC engaged with policymakers, regulators, and developers to support a competitive procurement structure, long-term contracts, and clear project eligibility requirements to help ensure the program attracts viable projects. MAREC documented its engagement in the entire process.

Virginia: Virginia passed a law in April 2026 dramatically increasing the energy storage target for the commonwealth from the initial 2020 goals under the Virginia Clean Economy Act (VCEA). Dominion Energy will add 16,000 MW of short-duration energy storage capacity and 3,480 MW of LDES capacity by 2045 and Appalachian Power will add 780MW of short-duration energy storage capacity by 2040 and 520MW of LDES capacity by 2045. The two utilities are required to petition the State Corporation Commission (the Commission) for approval to construct, acquire, or procure energy storage projects.

Maryland: Maryland enacted an energy storage target in May 2023, establishing a goal to deploy 3,000 MW of storage capacity by 2033. To help meet this target, Gov. Wes Moore signed the Next Generation Energy Act into law in May 2025, launching two procurements totaling 1,600 MW of storage.

In Round 1 of the program, the Maryland Public Service Commission received five applications seeking energy storage capacity credits for up to 800 MW of front-of-the-meter, transmission-connected storage projects.

MAREC played a key role in advancing the legislation and advocating for a competitive procurement structure, long-term contracts, and clear eligibility criteria to ensure the program could attract viable projects. MAREC’s engagement from 2024–2026 is outlined in the comments below.

MAREC Comments: