Garden State Energy Storage Program Phase 1, Tranche 2 FAQs
Access to these questions and answers by PDF are available here.
1. We see for the GSESP Phase 1 Tranche 2 that proof of a PJM system impact study is enough to qualify for the program, but we do not see where it says what exactly constitutes as proof. Could you please provide some detail as to what would need to be submitted to prove that the SIS process is ongoing?
Answer: Applicants may submit a completed Phase 1 System Impact Study as evidence of readiness for interconnection. If a project is actively undergoing a Phase 1 System Impact Study, a bidder must submit the applicable Project ID (Queue Number) corresponding with the project in order for NJBPU Staff to verify that it is being studied in Phase 1 of an active interconnection cycle. In addition to the Project ID of the applicable project, bidders may submit supplementary documentation to demonstrate a project is actively undergoing a Phase 1 System Impact Study such as:
- A completed and executed Application and Studies Agreement (ASA)
- Documentation demonstrating payment of the study deposit and readiness deposit required at the time of application.
2. We are evaluating whether two proposed energy storage projects may be eligible for participation in the Garden State Energy Storage Program (GSESP) Phase 1, Tranche 2 solicitation and would appreciate clarification regarding the interconnection readiness requirements. Both projects are transmission-scale battery energy storage systems located in New Jersey and have submitted validated applications into PJM's Cycle 1 interconnection cluster study process. The PJM Cycle 1 application window closed on April 26, 2026, and both projects are currently in the early stages of PJM's interconnection review process. The Tranche 2 Pre-Qualification Request & Final Application Instructions state that projects may satisfy the interconnection readiness requirement by providing: “A completed Phase 1 System Impact Study, a completed Surplus Interconnection Study, or equivalent study, or evidence that the project is in the process of undergoing a Phase 1 System Impact Study.” Could you please clarify whether a project with a validated application currently enrolled in PJM's Cycle 1 cluster study process would be considered to be “in the process of undergoing a Phase 1 System Impact Study” for purposes of GSESP Tranche 2 eligibility?
More specifically:
a. Does a validated PJM Cycle 1 interconnection application satisfy the interconnection readiness requirement for Tranche 2 pre-qualification?
b. If not, what specific PJM milestone or documentation would be required before a project in the cluster study process would become eligible?
c. Would NJBPU consider projects currently progressing through PJM's Cycle 1 study process to meet the intent of the interconnection readiness criteria?
Answer: The Board intended to allow projects undergoing interconnection review in PJM Cycle 1 to qualify for Tranche 2 when it set Tranche 2 interconnection maturity requirements. However, a validated interconnection application will not be sufficient evidence to demonstrate that a project is undergoing a Phase 1 System Impact Study for the final application, as a project will need to provide Staff with information that allows Staff to verify the project is actively undergoing Phase 1 review, not just the initial review PJM performs prior to the start of Phase 1. That said, Staff is aware that Cycle 1 will not progress to Phase 1 review until the end of July, and consequently no project will be able to demonstrate it is currently undergoing a Phase 1 System Impact Study during the prequalification review stage. Thus, for prequalification purposes only, Staff is willing to accept a validated Cycle 1 interconnection application, along with proof of payment of the accompanying study and readiness deposits, as evidence that a project will be undergoing a Phase 1 System Impact Study by the time of the final application deadline. As noted in the answer to question 1 above, projects will still need to provide a PJM queue ID number in their final application so Staff can confirm they are actually undergoing a Phase 1 System Impact Study during final application review.
2(a): As indicated above, a validated PJM Cycle 1 interconnection application, if accompanied by proof of payment of the required study and readiness deposits, will satisfy the interconnection readiness requirement for Tranche 2 pre-qualification purposes, but not final application purposes.
2(b): Please see answer to question 2(a) above.
2(c): Yes, projects currently progressing through PJM’s Cycle 1 study process meet the intent of the interconnection readiness criteria. As explained in the answer to question 2(a), a validated Cycle 1 interconnection application accompanied by proof of payment of the required study and readiness deposits will suffice for the prequalification application. However, in the final application bidders must submit their applicable Project ID (Queue Number) in order for NJBPU staff to verify the project’s queue status and ensure that it is still in the study process.