Maryland Public Service Commission Announces First-Round Energy Storage Awards

October 1, 2026

The Maryland Public Service Commission announced today that it has conditionally selected two transmission-connected energy storage projects to receive Energy Storage Capacity Credit awards during the first round of the state’s Next Generation Energy Act procurement. Energy Storage Capacity Credits help improve the ability of large energy storage projects to obtain financing by acting as a hedge against future PJM Interconnection capacity market price uncertainty by providing a more stable revenue stream.

The Commission selected the following projects:

Together, these projects would provide 440 megawatts of potential energy storage capacity with four-hour durations under flat, 15-year award terms, subject to the Commission’s approval conditions and obligations. The combined estimated cost of the two selected projects is 6.98 cents per month for a typical Maryland residential customer.

Background

The Next Generation Energy Act, which was enacted during the 2025 legislative session of the Maryland General Assembly, directs the Commission to conduct at least two solicitations for a cumulative 1,600 megawatts of front-of-the-meter, transmission-connected energy storage with a minimum four-hour duration. The first solicitation, which sought 800 megawatts, was issued through a Request for Applications on December 24, 2025.

Five applicants submitted proposals during Round 1. The Commission was assisted by its consultant, Power Advisory LLC, during the Round 1 process. They found all five applications administratively complete and eligible for consideration, then evaluated and ranked them using qualitative and quantitative criteria, including the consideration of cost-effectiveness and potential ratepayer impacts. Two applicants — the 300-megawatt Fourth Quarter Battery Energy Storage System project in Montgomery County and the 135-megawatt Pulaski Energy Storage Project in Baltimore County — subsequently withdrew from consideration.

Commission Decision

After a public hearing on July 30, 2026, and evidentiary hearings involving multiple parties from August 4-6, 2026, the Commission determined that the Chalk Point and Jade Meadow III storage projects were the most cost-effective and highest ranked remaining proposals.

The Chalk Point Storage Project would be located at the existing Chalk Point power plant site in Prince George’s County.  The Jade Meadow III Battery Storage Project would be a combined solar-and-storage facility located on a reclaimed coal mine in Western Maryland.

The Commission did not select the 500-megawatt Oystercatcher Energy Storage Project in Harford County for an award in Round 1 due to its lower project ranking and in consideration of cost-effectiveness and ratepayer impacts. However, the Commission recognized the project’s desirable electric grid location and characteristics and invited the applicant to consider participating in Round 2. The Commission also noted the need for continued engagement with local stakeholders in Harford County if the project is pursued further.

The Commission also denied Chalk Point’s proposed increase from 400 megawatts to 535 megawatts for Round 1 because the revised capacity was offered after the application window closed and was not evaluated through the competitive solicitation process. Chalk Point may submit their expanded proposal in Round 2.

“These awards are an important milestone for Maryland in our efforts to meet state energy policy goals set by the legislature in recent years,” said Commission Chair Kumar Barve. “While we are disappointed that these awards are below our 800-megawatt 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.”

Next Steps

Moving forward, the Chalk Point Storage and Jade Meadow III Battery Storage projects will be required to apply for construction approval from the Commission, which will require additional public and evidentiary hearings regarding non-financial aspects of the projects including safety, siting and environmental impacts, among other things. The Commission will also continue the Energy Storage Capacity Credit awards process through its Round 2 solicitation with a Request for Applications that will be issued by January 1, 2027.

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Media Contact: Tony Ruffin, Communications Director | tony.ruffin@maryland.gov

About the Public Service Commission:

The Maryland Public Service Commission regulates electric and gas utilities and suppliers, telephone companies (land lines), private water and sewer companies, passenger motor vehicle carriers for hire, taxicab companies in some jurisdictions and bay pilot rates. The Commission implements the State’s energy policy and also regulates the siting of energy generating facilities and high-voltage transmission lines.

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