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NJ A3132
NJ A3132Directs BPU to establish virtual power plant program to reduce peak demand for electric energy.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 create a virtual power plant program aimed at reducing the demand for electricity during peak usage times. A virtual power plant, or VPP, is defined as a collection of distributed energy resources (DERs) – like home solar panels, battery storage systems, or electric vehicle chargers – that are managed together to provide services to the electric grid. The program's goals include making the electric system more reliable, delaying the need for expensive upgrades to the electricity infrastructure, and ultimately lowering costs for consumers. The bill sets a target for VPPs to reduce peak demand by 500 megawatts by the year 2030. While the BPU will set the program's rules and minimum requirements, electric utilities will be responsible for putting it into action. Importantly, the bill specifies that any direct control over a customer's electricity usage or storage must be handled by third-party DER aggregators, not the utilities themselves. Electric utilities will be required to submit plans for implementing and reporting on the program to the BPU.
Committee Categories
Transportation and Infrastructure
Sponsors (3)
Last Action
Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 01/13/2026)
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/2026/A3132 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3132_I1.HTM |
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