FOR IMMEDIATE RELEASE
May 20, 2025
TO ARRANGE AN INTERVIEW CONTACT: EVAN VAUGHAN, EXECUTIVE DIRECTOR, MAREC ACTION, 202-431-4640 EVAUGHAN@MAREC.US
Annapolis, MD – Today, Governor Moore signed the Next Generation Energy Act into law, shielding ratepayers from the worst of future price hikes and positioning Maryland as an energy storage leader within the 13-state PJM Interconnection Region. This groundbreaking legislation introduces several measures to support a reliable power grid and keep costs reasonable for consumers. Notably, the bill establishes a new transmission-connected energy storage procurement program designed to enhance the state’s energy infrastructure, stabilize electricity rates, and provide energy storage developers with a path forward to build their projects.
The Next Generation Energy Act includes two major 800 MW procurements – for total of 1,600 MW. The first procurement, administered by the Public Service Commission, is scheduled for early 2026. A second procurement will follow in early 2027. Energy storage projects will be selected through a competitive process and incentivized with a fixed-value energy storage credit under this program. The value of the credit will be determined through bidding with consideration of forecast capacity value, environmental benefits, time of delivery, avoided or deferred transmission investments, and other attributes.
“With this legislation, our industry will invest in Maryland, deliver reliable energy resources needed to keep the lights on, and stabilize prices for Maryland ratepayers,” said Evan Vaughan, Executive Director of MAREC Action. “Governor Moore and legislative leaders acted quickly and decisively to ensure Maryland maximizes its energy storage resources. These resources meet energy reliability needs more quickly than any other resource.”
“MAREC Action and our members wish to thank Senate President Bill Ferguson, Speaker Adrienne Jones, Chair C.T. Wilson, Chair Brian Feldman, Vice Chair Brian Crosby, Delegate Lorig Charkoudian, Senate President Pro Tempore Malcom Augustine and Senator Benjamin Brooks for their leadership roles in the development and passage of the Next Generation Energy Act,” added Vaughan.
Energy storage systems correct imbalances between supply and demand of electricity. Today, lithium-ion batteries, like those found in electric vehicles, are the most deployed energy storage resource. Several other chemical, mechanical, and thermal battery technologies exist at different stages of commercialization.
To date, the PJM grid has only 375 MW of battery energy storage installed. This deployment pales in comparison to California (with 12,000 MW of storage capacity) and Texas (with 8,700 MW). Maryland’s Next Generation Energy Act provides a pathway to jumpstart the industry in PJM with new energy storage projects expected in the next 3-4 years.
In the face of energy demand, battery energy storage projects are more reliable and deployed more quickly than other energy resources. Results from PJM’s Rapid Resource Initiative show that, for Maryland, battery storage projects will be the vast majority of available-on-demand energy resources that could come online before 2030.
Storage projects awarded credits under the Next Generation Energy Act transmission-connected procurement must come online within 24 months, ensuring dispatchable electricity generation stabilizes Maryland electricity rates.
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