What New Jersey’s Grid Modernization Proposal Means for Utilities and DER Integration

Across the United States, distribution grids are under unprecedented pressure. The rapid growth of distributed energy resources (DERs) – from residential solar systems to battery storage and electric vehicle (EV) charging infrastructure – is transforming the way electricity is generated and consumed.

However, while customer demand and clean energy adoption accelerate, many utilities still rely on fragmented data, manual studies, and legacy workflows that create backlogs, uncertainty, and frustration for developers and customers alike. Interconnection queues have become a bottleneck for the energy transition.

To address this challenge, the New Jersey Board of Public Utilities (NJBPU) introduced grid modernization rules (PRN 2024-067, N.J.A.C. 14:8-4 and 14:8-5) aimed at overhauling interconnection processes and laying the foundation for a comprehensive grid modernization effort.

This regulatory initiative represents a national signal for grid modernization. Utilities must move from reactive, paper-based processes toward digital, data-driven systems that enable transparency, automation, and collaboration.

What New Jersey Is Proposing

• A Common Interconnection Agreement Process (CIAP): A shared online portal that standardizes interconnection workflows, communication, and data exchange.
• Hosting Capacity Transparency: Utilities must publish regularly updated hosting capacity maps.
• Pre-Application Verification & Evaluation (PAVE): Developers gain access to grid data before submitting full applications.
• New Review Levels and Timelines: Updated technical definitions (aligned with IEEE 1547-2018) and transparent timeframes for reviews.
• Integration of Storage and Community Solar: Recognition of community solar’s growing importance.
• Cost Recovery: Utilities may recover CIAP development costs via application fees.

Together, these measures aim to reduce uncertainty, eliminate redundant steps, and accelerate viable interconnections while preparing the grid for higher DER penetration.

(Source: New Jersey Register, June 3, 2024 – PRN 2024-067) 

Why This Matters for Utilities Nationwide

New Jersey’s approach acknowledges that integrating renewables successfully depends on process and data capacity, not just generation capacity.

For utilities, the proposal means:

• Less manual engineering review for low-impact applications
• Better use of technical resources for complex studies
• Fewer disputes and improved regulatory compliance
• Better customer and developer experience

It also creates the foundation for a data-driven planning culture, where interconnection and grid planning workflows are integrated into a cohesive digital ecosystem.

How Digital Platforms Accelerate Grid Modernization

Digital platforms like envelio’s Intelligent Grid Platform (IGP) enable utilities to:

• Create validated, computable grid models reflecting real-world network states
• Automate technical evaluations of interconnection requests
• Provide Online Connection Checks for customers and developers
• Run hosting capacity analyses and visualize constraints
• Integrate GIS, SCADA, and MDM data into one environment

Utilities in Europe – including E.DIS, Elektrilevi, and Syna – have already shown that digital interconnection processes reduce processing times dramatically and improve data quality.

Explore how the IGP supports modern interconnection workflows

The Road Ahead: Preparing for a Digital Interconnection Future

The BPU’s proposal is only the beginning. The Grid Modernization Forum will address non-wire alternatives, DER flexibility services, and future reforms.

Utilities should begin to:

• Assess data quality and system interoperability
• Develop hosting capacity maps
• Automate early-stage screening and technical evaluations
• Build internal capabilities for data-driven decision-making

New Jersey signals a national trend: grid modernization is becoming essential infrastructure for the clean energy transition.

Conclusion

New Jersey’s grid modernization proposal (PRN 2024-067) sets a clear path for modernizing interconnection processes with transparency, automation, and standardization. Utilities that digitize their grid processes now will be best positioned to meet clean energy goals and manage interconnection growth.

The future of interconnection is digital — and it starts with data.