Maryland selected two energy storage projects totaling 440 MW in the first round of a new state procurement program, the Maryland Public Service Commission announced Thursday. The awards fall significantly below the state's 800 MW target for the initial round but represent a step toward addressing regional capacity shortages and meeting the state's ambitious clean energy goals.
The commission chose Flatiron Energy's 400 MW/1,600 MWh Chalk Point Storage Project in south-central Maryland and REV Renewables's 40 MW/160 MWh Jade Meadow III Battery Storage Project in the western part of the state. Both projects will receive flat pricing under 15-year contracts at a combined cost of 6.98 cents per month for the average Maryland residential customer, according to the commission. The procurement stems from the Next Generation Energy Act, passed in 2025, which requires Maryland to conduct at least two solicitations for a combined 1.6 GW of energy storage capacity. All eligible projects must be designed to discharge at full power for at least four hours. The commission announced the first-round awards on Thursday, the statutory deadline, and must open bidding for the second round by Jan. 1, 2027, with project awards due by Oct. 1, 2027.
Flatiron's project will be located at NRG's oil- and gas-fired Chalk Point power plant in the southeastern corner of Prince George's County, while REV will site its project on a portion of a reclaimed coal mine in mountainous Garrett County, near Maryland's border with West Virginia and Pennsylvania, the commission said. The commission declined to award the 500-MW/3,000-MWh Oystercatcher Energy Storage Project or a 135-MW/540-MWh expansion Flatiron requested for the Chalk Point project in a revised filing after the first-round application window closed. The commission invited Oystercatcher to consider participating in round two, citing the "desirable electric grid location and characteristics" of the project's northeastern Maryland site while noting "the need for continued engagement with local stakeholders in Harford County if the project is pursued further."
The awards come as PJM Interconnection, the regional grid operator, faces what Federal Energy Regulatory Commission chair Laura Swett last week called a "mess." The grid operator confronts a capacity shortfall of 6.8 GW for the 2028-2029 delivery year, up 300 MW from the previous period, with capacity prices stuck at the $325/MW-day cap. Evan Vaughan, executive director of MAREC Action, a regional clean energy group, said Thursday's selections will help mitigate the effects of PJM's high capacity prices. "These projects can help meet growing electricity demand while reducing exposure to volatile capacity prices that ultimately affect customers' bills," Vaughan said in a statement. Maryland also has ambitious clean energy goals, including a statutory 2045 target for statewide net-zero emissions and a 2035 goal for 100% carbon-free electricity set by gubernatorial order.
Maryland Public Service Commission Chair Kumar Barve called the first-round award a milestone in the state's effort to meet its energy policy goals while acknowledging its relatively modest contribution. "While we are disappointed that these awards are below our 800-MW 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," Barve said. The state's two-round procurement aims to install enough storage capacity to help stabilize regional energy markets while advancing Maryland's transition away from fossil fuels.