ResilienceNew Jersey launches distributed energy initiative

Published 20 August 2014

More than two million households lost power in New Jersey during Superstorm Sandy in 2012, and water and wastewater treatment plants lacked electricity, forcing millions of gallons of raw sewage to be released into the state’s waterways. State officials concluded that relying exclusively on centralized grids for electrical power distribution would continue to be a risk during disasters such as hurricanes. The state recently announced the launch of the nation’s first Energy Resilience Bank(ERB), which will support the development of distributed energy resources at critical facilities throughout New Jersey.

More than two million households lost power in New Jersey during Superstorm Sandy in 2012. State officials soon concluded that relying exclusively on centralized grids for electrical power distribution would continue to be a risk during disasters such as hurricanes. The U.S. Global Change Research Programpredicts that extreme weather events are likely to occur more often due to climate change, so New Jersey officials have been exploring ways to promote infrastructure and energy resiliency before another weather disaster occurs.

The state recently announced the launch of the nation’s first Energy Resilience Bank (ERB), which will support the development of distributed energy resources at critical facilities throughout New Jersey. The $200 million fund, obtained through New Jersey’s second Community Development Block Grant-Disaster Recovery (CDBG-DR) allocation, will provide funding in the forms of low-interest loans and grants to “critical facilities that offer the greatest resilience benefits for the State.”

New Jersey has highlighted providing distributed energy solutions to water and wastewater treatment plants as its first priority. During Superstorm Sandy, water and wastewater treatment plants lacked electricity, forcing millions of gallons of raw sewage to be released into the state’s waterways.

Some critical facilities continued to function, however. H Some hospitals employed distributed energy resources, including combined heat and power (CHP), fuel cells (FC), and off-grid solar inverters with battery storage, which allowed them to operate during the power outage of 2012.

 “The launch of the ERB will enable many more such facilities to remain operational during future outages. In addition to providing resilience, the benefits of distributed energy resources also include lower and stable energy costs, a cleaner environment through reduced emissions, and increased overall efficiency,” the New Jersey Board of Public Utilitiessaid.

Advocates of clean and alternative energy sources are praising the ERB as a model for other states to consider to reduce reliance on overworked electric grid systems. Lewis Mildord, president of Clean Energy Group, called ERB an innovative way for states to finance projects like “solar with energy storage in food banks, fire stations, wastewater treatment plants, and schools. This is a model that other states should track and evaluate for possible replication.”