Atlantic City Electric has filed a proposal with the N.J. Board of Public Utilities to build a 500-megawatt battery energy storage system in Pittsgrove Township — a project the company says would be large enough to power approximately 400,000 homes and would represent the single largest battery storage installation anywhere in the PJM grid, BINJE has learned.
To be clear, unlike a power plant, the facility wouldn’t generate any new electricity. Instead, it would store power already generated elsewhere on the grid — often solar and wind power that would otherwise go unused — charging during periods of low demand and discharging during peak hours, typically in the late afternoon and early evening.
The scale of the project is stunning.
PJM’s entire footprint — 13 states plus Washington, D.C. — currently has only about 500 megawatts of battery storage capacity in total, according to Mario Giovanini, director of development for parent company Exelon. If approved, ACE’s single facility would effectively double the amount of battery storage on the entire PJM grid.
Atlantic City Electric officials told BINJE that the proposed facility will help the massive supply-and-demand energy issues in New Jersey in two other key ways:
Cost: The officials estimate approximately 70 percent of the cost will be absorbed by various grants and tax credit programs;
Speed to market: Virtually all proposals to increase generation (whether it be gas, nuclear, wind) require an 8- to 12-year building period; the officials estimated this facility could be in use as soon as 2030.
The filing comes as electricity costs climb across New Jersey and the broader PJM region. Since 2024, the typical Atlantic City Electric residential customer’s monthly bill has risen by about $40, with 86% of that increase tied to rising PJM supply costs, the company said.
A PJM capacity auction this month came in nearly 7 gigawatts short of the generation PJM says is needed to maintain reliability.
“This project is a direct response to the energy supply challenges facing our region,” Atlantic City Electric President Andrew Hendry said. “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.”
The facility would sit on approximately 20 acres of a 100-acre property Atlantic City Electric already owns in Salem County. Construction would bring hundreds of union jobs to the area, though the completed facility would require only a small operating staff given the level of automation involved, according to the company.
Atlantic City Electric is developing the project with Invenergy, which the company describes as North America’s largest privately held developer, owner and operator of power infrastructure. Invenergy has built 35 energy projects across the PJM region totaling more than 7,400 megawatts of battery storage, solar, wind and natural gas capacity.
Capturing unused energy is key.
Giovanini said roughly 20 gigawatts of solar and wind power across PJM goes unused on a given day simply because there isn’t enough storage capacity to capture it. The four-hour batteries ACE is proposing are designed to target the roughly five peak-demand days a year — and the narrow afternoon-to-evening windows within them — when the grid comes under the most stress.
The need is there, Hendry said.
“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,” he 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.”
As with any proposal by a utility, the impact on the ratepayer is a top concern.
Atlantic City Electric officials say the project is structured so customers won’t see any bill impact for the first five years of operation, a stretch the company said extends to roughly 2035 or 2036.
Revenue the project earns by participating in PJM’s wholesale energy markets — which ACE estimates could total around $1 billion over time — would be returned entirely to ratepayers rather than retained by the company.
Hendry declined to disclose the total project cost, citing confidentiality.
The proposal is separate from New Jersey’s Garden State Energy Storage Program, a state incentive program for which utilities are not eligible to apply. ACE is filing under different BPU authority and describes the project as complementary to, rather than competing with, the state program.
If approved, the project would mark the first time a New Jersey utility has owned and operated a battery storage facility at this scale. ACE’s parent company, Exelon, has already deployed similar technology at utilities in Maryland and Illinois, including Delmarva Power’s facility in Ocean City, Maryland; Baltimore Gas and Electric; and two ComEd sites in Illinois.
Because this would be the first time a New Jersey utility owns and operates a battery storage facility at this scale, Hendry said the project amounts to a matter of first impression for state regulators.
Hendry said the BPU and the state’s ratepayer advocate will have full access to the company’s cost assumptions and financial projections during the review and ultimately will decide whether the project is a prudent, cost-effective way to address the state’s supply shortage.
Atlantic City Electric, an Exelon company, serves approximately 572,000 customers across South Jersey. The battery storage proposal is part of what the company calls an “all-of-the-above” strategy to address the state’s growing energy needs through infrastructure investment and grid modernization.
It also will help mitigate worst-case scenarios.
“Bringing more energy supply online as quickly as possible is absolutely critical for the state,” Hendry said. “It’s critical for our residents. It’s critical for our economic well-being. And it’s critical to prevent the worst-case scenario, which — let’s not mince words — could be blackouts down the road.
“That’s what we’re ultimately looking to prevent.”
