Maryland procures 440 MW / 1,760 MWh energy storage in first-round awards under Next Generation Energy Act; falls short of 800-MW state target due to PJM capacity constraints.
Maryland's first energy storage procurement under the Next Generation Energy Act fell short of its 800-MW target, awarding just 440 MW of capacity across two projects as the PJM Interconnection grapples with a widening capacity crunch.
The Maryland Public Service Commission announced awards on October 1, 2026, selecting Flatiron Energy's 400 MW/1,600 MWh Chalk Point Storage Project in south-central Maryland and REV Renewables's 40 MW/160 MWh Jade Meadow III Battery Storage Project in far western Maryland. Both projects will receive 15-year terms at flat pricing, contributing a combined cost of 6.98 cents per month for the average Maryland residential customer.
Flatiron's project will colocate with NRG's oil- and gas-fired Chalk Point power plant in southeastern Prince George's County. REV's facility will be sited on reclaimed coal mine land in mountainous Garrett County, near Maryland's borders with West Virginia and Pennsylvania.
The awards address mounting pressure in PJM's capacity markets. Federal Energy Regulatory Commission Chair Laura Swett recently characterized the situation as a "mess," with PJM facing a capacity shortfall of 6.8 GW for the 2028–2029 delivery year—up 300 MW from the prior period—as capacity prices remain pegged at the $325/MW-day ceiling.
The Next Generation Energy Act, passed in 2025, mandates at least two solicitations for a combined 1.6 GW of energy storage capacity. Eligible projects must be designed to discharge at full power for at least four hours. The commission must open bidding for the second round by January 1, 2027, and announce awards by October 1, 2027.
The commission declined to award the 500 MW/3,000 MWh Oystercatcher Energy Storage Project or Flatiron's requested 135 MW/540 MWh expansion of Chalk Point. The commission invited Oystercatcher to compete in round two, citing the project's "desirable electric grid location and characteristics" in northeastern Maryland while noting the need for deeper engagement with local stakeholders in Harford County.
Evan Vaughan, executive director of the Mid-Atlantic Renewable Energy Coalition (MAREC Action), welcomed the selections. "These projects can help meet growing electricity demand while reducing exposure to volatile capacity prices that ultimately affect customers' bills," he said.
Maryland Public Service Commission Chair Kumar Barve acknowledged the shortfall while expressing optimism for the next phase. "While we are disappointed that these awards are below our 800-MW target for Round 1, our Round 2 solicitation is expected to attract many more offers due to a pool of over 40 additional energy storage projects from PJM's Cycle 1 interconnection process," Barve said.
The awards support the state's ambitious clean energy agenda, which includes a 2045 net-zero emissions target and a 2035 goal for carbon-free electricity mandated by gubernatorial order.