NJ Gov. Sherrill has a plan to boost renewables and natural gas

January 23, 2026

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Lambasting efforts by the Trump administration to curb renewable energy development, New Jersey Gov. Mikie Sherrill signed an executive order this week aimed at expanding solar generation and battery storage in the state.

The order, one of two aimed at tackling rising electricity rates, made good on one of her campaign promises, and declared the shrinking gap between supply and demand and the resulting rate hikes a state of emergency. Sherrill also seeks to expand natural gas plants and study the potential for new nuclear power.

Currently, natural gas and nuclear generate the bulk of the state’s electricity, with nuclear producing 42% and natural gas 49%.

Clean energy advocates praised the move.

“The governor is really focusing on how can we build out as much renewable energy as possible …  and how can we do it faster and cheaper by cutting red tape,” said Alex Ambrose, a policy analyst with the left-leaning think tank New Jersey Policy Perspective, which leads a coalition of groups advocating for renewable energy called Power Play NJ. “All of these will result in lower bills in the long term for everyone.”

But Ambrose stopped short of praise when it came to the expansion of natural gas generation.

“There is no reason, economical or otherwise, that we should build new natural gas plants in New Jersey,” she said.

The order points to current and future data centers driving up demand and shrinking supplies, causing the region’s grid operator, PJM Interconnection, to project the peak load growth in electricity to jump 20% by 2030. That could mean even higher electricity rates.

PJM conducts auctions among power suppliers to secure enough energy through peak demand, such as during heat waves. These auctions set an electricity price in return for generators promising to deliver a future supply. The price has soared to record-breaking heights in recent years. The most recent PJM auctions in December and July cost New Jersey ratepayers a combined $4 million in new costs, according to the governor’s order.

At December’s auction, PJM was unable to secure sufficient power supplies, which could lead to rolling brownouts or blackouts as early as June 2027. Exacerbating the problem is that much of the future increased demand from new customers, like data centers, are speculative and can inflate the actual need. Referred to as “ghost loads,” these projected demands can still drive up costs even if a project never gets built.

Although PJM has said it’s done much to speed up new power connections, critics say PJM has been slow to bring on new renewables to the grid.

“It is clear that the process from when a developer wants to build new energy to when it actually gets plugged into the grid has simply gone on far too long, and that’s part of the reason that we’re in this situation to begin with,” Ambrose said.

Sherrill recently told WHYY News that she would be working with other governors across the region to “force [PJM] to push more power into our grid so we can drive down costs over time.”

“What that will look like on the ground is immediately moving into things like solar and battery storage, which are the quickest ways to do that,” Sherrill said, adding that the state will also “be making sure we’re modernizing gas generation and then looking to the long term with things like nuclear power.”

The order directs the New Jersey Board of Public Utilities to seek new solar farms and battery storage solicitations within 45 days, and shed light on “ghost loads” by forcing utilities to make public any new power requests from data centers. State agencies and regulators, including the Department of Environmental Protection, must “identify permit reforms” that would waive compliance with current rules and regulations to speed up approval of new energy projects, including new natural gas power plants.

“So the permitting process in New Jersey, frankly at almost every level of government, is simply too onerous to get projects done in an efficient and economical manner,” Ambrose said.

The order also directs the Board of Public Utilities to explore “virtual power plants,” which could include a decentralized network of residential solar panels, electric vehicle chargers and batteries to tap into during peak demand.

“It’s aggregating all of those resources and being able to turn them on and off when the grid demands it,” Ambrose said. “So, essentially you are creating a power plant.  It’s just not all physically aggregated in the same space, the same place.”

Neither Atlantic City Electric or PSEG would answer questions about the plan, but both issued statements that they are willing to work with Sherrill.

“We understand our communities are struggling with high energy costs because our employees are the neighbors, friends, and families that make up these communities,” Atlantic City Electric officials wrote in a statement. “As the new administration begins its work, Atlantic City Electric stands ready to collaborate with Governor Sherrill on efforts to make energy more affordable for all New Jerseyans.”

“PSEG believes that steps must be taken to safeguard long-term energy reliability and cost effectiveness for residents as New Jersey relies on imported electricity for more than 40% of its power, which is only expected to grow as demand increases,” PSEG officials wrote in a statement.

Earlier this month, the White House, along with a bipartisan group of governors that included Pennsylvania Gov. Josh Shapiro, urged PJM to hold an emergency auction specifically for data centers. PJM responded with a plan to have data centers provide their own power, or risk losing electricity during peak-demand times.

WHYY’s David Matthau contributed to this report.

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