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Bill > A6159
NJ A6159
NJ A6159Directs BPU to establish virtual power plant program to reduce peak demand for electric energy.
summary
Introduced
12/04/2025
12/04/2025
In Committee
12/04/2025
12/04/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill would require the Board of Public Utilities (BPU) to establish, by board order, a virtual power plant program to reduce peak demand for electric energy and provide other services to electric customers. As defined by the bill, "virtual power plant" means an aggregation of distributed energy resources, e.g., residential solar systems, behind-the-meter energy storage systems, or electric vehicle charging systems, enrolled either directly with an electric public utility or indirectly through a distributed energy resource (DER) aggregator, that are operated in coordination to provide one or more grid services. The purpose of the program would be to reduce system peak demand, increase resource adequacy, reduce or defer the need for costly distribution system infrastructure upgrades, and help maintain grid reliability through virtual power plant services provided by DER aggregators in the State. The program would be required to be designed with a target for peak demand reduction of 500 megawatts by 2030. The bill would require the BPU to establish minimum requirements for the program, but electric public utilities would be responsible for the program's implementation. However, the bill would require that any direct control of electricity customers' electricity usage or storage would be by third-party DER aggregators, rather than by electric utilities. Under the bill, each electric public utility would be required to file an implementation and reporting plan with the BPU, as well as an annual report.
AI Summary
This bill directs the Board of Public Utilities (BPU) to establish a virtual power plant program designed to reduce peak electricity demand and improve grid reliability. A virtual power plant (VPP) is defined as an aggregation of distributed energy resources (like solar systems, battery storage, or electric vehicle charging systems) that can be coordinated to provide grid services. The program aims to reduce system peak demand by 500 megawatts by 2030, and will require electric utilities to develop implementation plans that include specific requirements such as allowing customers to combine various energy technologies, establishing technical standards for energy resource management, and ensuring participation from low- and moderate-income communities. Importantly, the bill mandates that utilities cannot directly control customers' electricity usage or storage; instead, third-party distributed energy resource aggregators must manage these systems. The program is intended to provide multiple benefits, including reducing ratepayer costs, supporting renewable energy integration, improving grid resilience, and potentially avoiding costly infrastructure upgrades. Each electric utility will be required to file annual reports demonstrating compliance with the program's metrics, with potential financial consequences for failing to meet established goals.
Committee Categories
Transportation and Infrastructure
Sponsors (3)
Last Action
Assembly Telecommunications and Utilities Hearing (10:00:00 1/5/2026 Committee Room 13, 4th Floor, State House Annex, Trenton, NJ) (on 01/05/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A6159 |
| BillText | https://pub.njleg.gov/Bills/2024/A6500/6159_I1.HTM |
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