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Bill > S3399
NJ S3399
NJ S3399Directs BPU to establish virtual power plant program to reduce peak demand for electric energy.
summary
Introduced
02/09/2026
02/09/2026
In Committee
02/09/2026
02/09/2026
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, which is essentially a coordinated network of distributed energy resources (DERs) like home solar panels, battery storage, and electric vehicle chargers. These DERs, managed by third-party DER aggregators, will work together to reduce the demand for electricity during peak usage times, thereby improving grid reliability, potentially lowering costs for consumers by avoiding expensive infrastructure upgrades, and increasing the capacity for renewable energy. The program aims to achieve a 500-megawatt reduction in peak demand by 2030, with electric utilities responsible for implementing the program according to minimum requirements set by the BPU, but with the crucial stipulation that direct control over customer energy usage or storage must be handled by the DER aggregators, not the utilities themselves.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 02/09/2026)
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/S3399 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3399_I1.HTM |
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