Solmar Insights
Maryland has awarded 440 MW/1,760 MWh in grid-connected battery projects in the state’s first bulk energy storage solicitation, providing support as PJM Interconnection faces a 6.8 GW capacity shortfall for 2028 to 2029. The two winning bids, Flatiron Energy’s 400 MW/1,600 MWh Chalk Point Storage Project and REV Renewables’s 40 MW/160 MWh Jade Meadow III, fell short of the state’s 800 MW target but mark the largest grid storage commitment to date in the state.
Key figures
440 MW/1,760 MWh storage awarded
6.98 cents/month average bill increase
6.8 GW PJM capacity shortfall for 2028-2029
15-year contract term
Project details and locations
The Maryland Public Service Commission announced the two winning projects on October 1, 2026, selecting Flatiron Energy and REV Renewables for awards under 15-year flat-pricing contracts. Flatiron’s Chalk Point Storage Project, with a capacity of 400 MW and 1,600 MWh, will be sited at the existing NRG oil- and gas-fired Chalk Point power plant in Prince George’s County, southeast Maryland. REV Renewables’ Jade Meadow III will add 40 MW/160 MWh in western Maryland. Both projects are directly connected to the transmission grid, enabling four-hour discharge cycles as required under state procurement rules.
This round of procurement delivers a significant storage resource to the state but reaches only 55% of the 800 MW target set for the first solicitation under the Next Generation Energy Act. The awards will cost the average Maryland household 6.98 cents per month, according to the Public Service Commission, which has structured the pricing for pass-through on customer bills.
The Next Generation Energy Act requirements
Passed in 2025, Maryland’s Next Generation Energy Act mandates a total of at least 1.6 GW of bulk energy storage to be developed through two rounds of competitive solicitations. Projects must be capable of discharging at full rated power for at least four hours, aligning with grid reliability needs and the requirements set forth by the Maryland Public Service Commission. The Act requires that the second solicitation opens by January 1, 2027, with awards announced no later than October 1, 2027.
The storage program has been designed to address grid reliability challenges emerging in the Mid-Atlantic, especially as capacity market shortfalls plague regional system operator PJM. Projects selected in this and future rounds must demonstrate both scale and the technical capability to support transmission-level reliability for Maryland’s load-serving entities.
Capacity constraints and ratepayer impacts
PJM Interconnection, the regional transmission operator serving Maryland and much of the eastern US, faces a 6.8 GW capacity shortfall for the 2028 to 2029 delivery year, with capacity prices remaining at the $325/MW-day price cap. Federal Energy Regulatory Commission Chair Laura Swett recently characterized PJM’s capacity situation as a “mess.” The awarded storage projects are specifically positioned to mitigate exposure to this market volatility, as highlighted by representatives from regional energy coalition MAREC Action.
By fixing the cost impact for retail customers at just under 7 cents per month on average, Maryland’s Commission has prioritized affordability alongside reliability. The selected storage resources are expected to dampen exposure to spikes in capacity prices, potentially providing cost stability for end-users as PJM’s markets contend with rising demand and transmission bottlenecks.
Market implications for developers and load
The procurement result demonstrates two trends: first, the challenge of developing sufficient new capacity to meet aggressive targets even amid urgent grid needs, as evidenced by the award amount falling below the state’s intent. Second, the flat-pricing auction structure provides developers a guaranteed 15-year revenue stream, potentially improving project financeability and lending certainty to storage developers working in PJM’s often volatile capacity marketplace.
Both Flatiron Energy and REV Renewables are established players and members of MAREC Action, positioning their projects to leverage both advocacy power and market experience. These deployments could serve as early templates for state-backed reliability procurements in other areas impacted by PJM’s interconnection and capacity headwinds. Market participants will now track how these projects perform in construction and operations as Maryland prepares to open bidding for the next 800 MW of capacity in early 2027.
What this means for buyers
Grid-scale battery storage in Maryland and the wider PJM region faces immediate changes in available capacity and contract certainty. Maryland’s procurement has awarded 440 MW of long-term contracted storage, with contracts fixed for 15 years, below statutory targets but impactful for forward resource planning. Buyers evaluating storage investments or offtake contracts should factor in tightened competition for the second 800 MW round, scheduled to open by January 2027.
Reporting via the original publisher
