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New Jersey Issues Notice Of Grid Flexibility Services Proceeding, Includes VPP Compensation, TOU Rates, More
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The New Jersey BPU has filed in docket QO26030059 a notice of a Grid Flexibility Services proceeding within the BPU's new Grid Modernization Forum (GMF), which is comprised of workgroups which are to tackle the barriers to increasing hosting capacity, distributed energy resource (DER) participation, and grid flexibility
For the Grid Flexibility Services proceeding, areas of focus include:
• Grid Flexibility Services Architecture
• Device Interoperability Standards
• DER Aggregation, including Configuration and Orchestration
• Service needs/calls
• Flexible Interconnect
• DR and load flexibility
• Enabling technologies (e.g., DERMS, Storage, etc.)
The initiative will also consider compensation mechanisms including:
• VPP compensation (PJM, Retail))
• Dynamic pricing structures (TOU)
• Tariffs enabling grid flexibility services
• Value stacking
• Other incentives
A Grid Services workgroup is to create a service architecture that standardizes the integration, interoperability, aggregation, and orchestration of interconnected and aggregated DER, such that a broad range of flexibility services can be called upon from these assets.
The workgroup will focus on:
a) Characterizing needed grid service elements
b) Identifying interoperability barriers for heterogeneous DER service delivery
c) Determining appropriate service value and compensation amounts and methods and
d) Initiating data collection pilots that will support the development of a commercial scale VPP program built upon this service architecture
The resulting workgroup findings and recommendations are to be used to inform future tariff language governing these grid flexibility services and subsequent VPP Programs.
Docket QO26030059
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April 8, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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