Grid Modernization
The New Jersey Board of Public Utilities’ Grid Modernization initiative is aimed at mitigating these strains by enabling a smart, flexible grid with opportunities for electric customers to move past traditional roles of passively consuming central station generated energy.
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Introduction
New Jersey has been a leader in clean energy adoption and beneficial electrification for several decades and has lowered barriers to adoption through many innovative and directed programs. As technology advances, and these programs drive distributed energy adoption even higher, the strains that are evident on the legacy distribution system are becoming more pronounced. The New Jersey Board of Public Utilities’ Grid Modernization initiative is aimed at mitigating these strains by enabling a smart, flexible grid with opportunities for electric customers to move past traditional roles of passively consuming central station generated energy. The customer of the modern grid will increasingly actively participate by offering their flexibility to alter consumption patterns as well as produce locally generated power when needed to maintain grid reliability.
Thus far, this work includes the development of rules modernizing New Jersey’s Interconnection Rules, Processes, and Metrics (Docket #QO2100085), and the development of the Grid Modernization Forum (GMF), where workgroups are being convened for targeted discussions with relevant stakeholders that guide the development of grid modernization rules on topics that include developing an integrated DER plan, updating tariffs to incorporate new interconnection rules, updating methodologies for determining upgrade cost allocation and estimation.
Navigate through the sections below to learn more about What is Grid Modernization, Why Grid Modernization, details about the GMF Workgroups, and GMF Activities and Archives, which includes information about current activities and program history.
What is Grid Modernization?
Grid modernization refers to the process of upgrading and improving the electrical grid (the system that delivers electricity from where it is generated to energy consuming homes and businesses) to make it more reliable, flexible, and capable of supporting new energy technologies and increased demand. The goal is to cost-effectively evolve the legacy grid to the needs of the future by transforming the existing utility distribution system and underlying business models to a market-driven, flexible, services-based ecosystem which will expand both the interconnection capacity for, and service participation of distributed energy resources such as solar, energy storage systems, and bidirectional electric vehicle chargers while ensuring resilience against natural disasters, cyber threats, and demand peaks.
Why Grid Modernization?
New Jersey (NJ) has launched an ambitious clean energy initiative aimed at reaching 100% clean energy and cutting greenhouse gas emissions to 80% below 2006 levels by the year 2050. The State’s 2019 Energy Master Plan (EMP) provides a roadmap centered around seven core strategies. Grid Modernization primarily supports EMP Strategy 2: Accelerate Deployment of Renewable Energy and Distributed Energy Resources (DER). Modernizing the grid is essential to achieving the EMP’s goals of integrating higher amounts of clean generation and storage, and better utilization of flexible demand. It also lays the groundwork for broader DER integration, aligning with the deeper decarbonization targets set out in the 2019 update to the Global Warming Response Act (GWRA).
The core objectives of grid modernization are to enable cost-effective transformation of the existing utility distribution system and underlying business models. This transformation will bring NJ towards a more market-driven, flexible, and service-based ecosystem. This new ecosystem should expand both the interconnection capacity for and service participation of grid-edge DERs.
These efforts are expected to boost the NJ economy through new local jobs, private investment, faster adoption of clean energy technologies, and greater system resilience. A modern grid also plays a critical role in enabling other tools and incentives that will help drive the state toward its clean energy vision.
View the full report titled “Grid Modernization Study: New Jersey Board of Public Utilities” published in 2022 which served as a catalyst for launching the Grid Modernization Forum (GMF). This report includes an Executive Summary (summarized above), a Study Methodology, Findings, Best and Common Practices, and Targeted Findings and Recommendations for NJ.
Grid Modernization Forum Activities
A Grid Modernization Forum (GMF) was formed by NJBPU as the mechanism to bring expert industry advisors together with the four NJ EDCs in order to fully vet issues relating to distribution system functional evolution across the state. The forum is designed to host specific workgroups that are organized around key topical agendas; the initial workgroup named Integrated Distribution and DER (IDDER) was created in 2024 and tasked with developing recommendations for critical content needed in future EDC filed upgrade plans.
The GMF continues to move forward with a focus on collaboration, transparency, and long-term planning. In the coming months, the GMF will release a straw proposal that captures key findings and insights from the IDDER Workgroup. This proposal will serve as a foundation for continued dialogue and policy development and serve as a foundational document in the launch of the next workgroup that will be looking at potential service architectures that can be advanced on this modernized distribution grid.
Looking ahead, the GMF also plans to launch additional workgroups to delve into other priority areas of grid modernization. These upcoming efforts reflect the GMF’s ongoing momentum and strategic commitment to building a more resilient, efficient, and equitable energy system for NJ.
GMF Workgroups
Integrated Distribution and DER Planning Workgroup (Active)
Docket #QO24030199The Integrated Distribution and DER Planning (IDDER) Workgroup is actively engaged following its launch in the summer of 2024. Meeting approximately every two weeks, the Workgroup brings together a range of stakeholders to support efforts around integrated distribution system planning and the effective integration of DERs in NJ. This ongoing activity reflects momentum of the NJ CEP’s GMF and its commitment to collaboration with stakeholders in the State.
The following organizations are actively represented in the Workgroup:
- Rockland Electric Company (RECO)
- Public Service Electric & Gas (PSEG)
- New Jersey Department of Environmental Protection (NJ DEP)
- Mid-Atlantic Solar & Storage Industries Association (MSSIA)
- Lawrence Berkeley Lab
- Jersey Central Power & Light (JCP&L)
- Interstate Renewable Energy Council (IREC)
- Institute of Electrical and Electronics Engineers (IEEE)
- Electric Power Research Institute (EPRI)
- Clean Energy States Alliance (CESA)
- Atlantic City Electric (ACE)
To learn more about the IDDER Workgroup, view the Launch Notice outlining the broader GMF program overview, the description of the purpose and goals of the IDDER Workgroup, and relevant links to grid modernization efforts in the State.
Grid Flexibility Service Architecture Workgroup (Planned)
The Grid Flexibility Services Architecture (GridFlex) Workgroup will be the second GMF working group, to be convened with invited experts in 1Q2026.
This workgroup will be utilizing an Innovation Pilot methodology to better characterize the nature of the grid services that could be invoked and compensated, for participating DER aggregations that expand integration capacity and provide operational flexibility to the distribution grid.
GMF Origin and Archive
Prior to starting the GMF, the NJBPU or “Board” held a series of public meetings to collect stakeholder input on the current distribution grid interconnection policies and process, and potential improvements that will enable faster grid modernization and higher levels of DER absorption.
All meetings in the series started with a brief presentation by NJBPU Staff recapping the GMF and activities to date, with an emphasis on their relation to strategies outlined in the 2019 NJ Energy Master Plan. The sessions then featured specific presentations and a facilitated comment collection that will be used in a formalized NJBPU Proceeding at the conclusion of the series. The aim was to facilitate a guided discussion on recognition of existing barriers, estimate economic impacts of alternative reform paths, and ultimately build the broadest consensus on aligned measures that can remove or reduce the biggest barriers to grid modernization.
All relevant GMF activities are shown in the table below, in order from most to least recent. Such activities to date include stakeholder informational sessions, Board Actions, and updates to the New Jersey Administrative Code, also known as Rules. Rules are the ultimate mechanism to promulgate GMF recommendations. Thus far, amendments and new rules have been proposed at N.J.A.C. 14:8-5, which determines the interconnection of distributed energy resources to electric distribution companies’ distribution grids.
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Get Involved
Public input can meaningfully inform decision-making and policy development; members of the public have the opportunity to provide comments on proposed rules as they are published in the official docket, including during the straw rule phase. Public comments serve as an important avenue for stakeholders to share perspectives, raise concerns, and contribute to the refinement of regulatory language before final adoption. Links to rules for which are open to public comment will be posted on this page when available.
There may also be opportunities for the public to participate in and provide input or feedback on Innovation Pilot projects in the future. Public input on these initiatives helps ensure that pilot programs reflect a broad range of experiences and needs, and that innovative approaches are tested and evaluated with community perspectives in mind. Results from these evaluation programs will likely be made public ahead of any specific rules that they are informing.