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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)
Summary
As part of a broader effort to address rising capacity prices, Maryland recently awarded two battery-storage projects with generous capacity credits.Backing Up the PJM
The Maryland Public Service Commission recently awarded two battery energy-storage system (BESS) projects under its Energy Storage Capacity Credit (ESCC) program, during the first round of the state's Next Generation Energy Act procurement. Both projects are designed to be connected to the broader power grid. Industrial Info Resources is tracking nearly $3 billion worth of active and proposed BESS projects across Maryland, more than half of which is attributed to grassroot developments.Under the ESCC, Maryland will provide long-term capacity payments--based on stable, flat pricing for a 15-year term--to energy-storage projects that would help to curb market price volatility in the PJM Interconnection. Electricity providers within the state are required to purchase these storage capacity credits at a monthly fixed price, which is proportionate to each provider's capacity obligations.
The ESCC program is intended, in part, to address rising capacity prices on the PJM. The PJM Interconnection is the grid manager for an estimated 67 million people living in parts of 13 Mid-Atlantic and Midwestern states, including Pennsylvania, Ohio, Illinois and New Jersey, among others.
The two projects selected are Hull Street Energy's Chalk Point Storage Project in Aquasco, which is about 25 miles southeast of Washington, D.C., and LS Power Group's Jade Meadow III Storage Project in Westernport, which sits in the northwestern corner of the state. According to Industrial Info Resources data, both projects currently are expected to begin construction in 2028.
The Chalk Point BESS unit would be built next to the operational Chalk Point Power Station, which produces 1,744 megawatts (MW) of gas-fired electricity. The BESS unit would carry 400 MW via lithium-ion batteries and associated facilities. Industrial Info Resources offers more information on this project in its Global Market Intelligence (GMI) Power Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a project report a profile of the Chalk Point Power Station.
The Jade Meadow III BESS unit, which would carry 100 MW, is being developed as part of the Jade Meadow Solar III Plant, which is designed to generate 300 MW from photovoltaic (PV) panels provided by ZnShine PV-TECH Company Limited. Like the Chalk Point project, the BESS unit would use lithium-ion technology. Readers can learn more from a project report and plant profile.
The Maryland Public Service Commission said these two ESCC awards will incur a total cost of 6.98 cents per month for the average Maryland residential customer.
By the Numbers
- Nearly $3 billion: Total investment value (TIV) of active and proposed BESS projects across Maryland
- 15 years: How long Maryland will provide capacity payments based on stable, flat pricing for projects awarded under ESCC
- 67 million: Estimated number of people living in the PJM area, which covers parts of 13 Mid-Atlantic and Midwestern states
More Awards on the Horizon
By law, the Maryland Public Service Commission must open bidding for the second round of awards under the ESCC program by January 1, 2027, and it must announce the results by October 1. Among the project developers it has invited to participate is Tenaska Incorporated, whose Oystercatcher Battery Storage Project in Maryland Line was not awarded in the first round. Maryland Line sits on the Pennsylvania border, about 35 miles north of Baltimore.The Oystercatcher project would be a stand-alone unit connected to the 500-kilovolt (kV) Conastone Substation, which is managed by Baltimore Gas & Electric Company. It would carry up to 500 MW for the power grid. Readers can learn more from a project report a profile of the Conastone Substation.
Other Maryland BESS projects in the works include RWE Renewables Americas LLC's Fourth Quarter Battery Storage Project in Dickerson, which is about 30 miles northwest of Washington, D.C. The stand-alone project, which is proposed to be built at the now-closed coal-fired units at the Dickerson Power Plant, would carry 300 MW. Readers can learn more from a project report a profile of the Dickerson plant.
The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.
Industrial Info Resources also offers a full list of reports for active and proposed BESS projects across Maryland.
Key Takeaways
- Maryland awarded two BESS projects under the first round of its Energy Storage Capacity Credit program.
- Both projects currently are expected to begin construction in 2028.
- The Maryland Public Service Commission must open a second round of bidding for the ESCC program by January 1, 2027.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).
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