New Jersey is facing a familiar challenge confronting states across the country: electricity demand is growing while energy costs continue to rise. At the same time, utilities are proposing significant investments in new generation and grid infrastructure. 

Yet thousands of distributed energy resources (DERs)—including rooftop solar systems, home batteries, electric vehicles, smart thermostats, and flexible building technologies—already installed at homes and businesses throughout New Jersey are being under-leveraged. Despite their ability to support the grid during periods of peak demand, these resources have largely operated independently because the state lacked a comprehensive framework for enabling virtual power plants (VPPs). But overcoming outdated ways of thinking about the way the state sees distributed assets required a better appreciation for the value of these technologies. It also required political will, ideally driven from the very top of New Jersey’s government. With New Jerseyans soon to elect a new Governor, Advanced Energy United got to work engaging their future executive leader.

Advanced Energy United started engagement long before the first vote was cast in the 2026 New Jersey gubernatorial election. On the campaign trail, United met with both candidates for Governor, Mikie Sherrill and Jack Ciattarelli, to brief them on New Jersey’s energy challenges and the policy solutions available to address rising electricity costs, improve grid reliability, and accelerate deployment of advanced energy technologies.

Immediately following the November election in 2025, United developed a comprehensive transition memo for Governor-elect Mikie Sherrill outlining priority energy actions for the incoming administration. Among its core recommendations was advancing a statewide framework for VPPs.

Engagement continued during the transition when United’s New Jersey Policy Principal, Katie Mettle, was appointed to Governor Sherrill’s Energy Transition Team, co-chaired by former U.S. Energy Secretary Jennifer Granholm and former FERC Commissioner Allison Clements. Working alongside other energy leaders, Katie helped develop recommendations focused on making New Jersey’s electric system more affordable, reliable, and resilient.

On her first day in office, Governor Sherrill signed an Executive Order directing the New Jersey Board of Public Utilities (BPU) to establish a regulatory framework for VPPs.

With rulemaking now underway, the focus has shifted from establishing the concept to designing a successful program that delivers measurable benefits for customers, grid operators, and advanced energy companies alike. 

United is now working to build on this momentum by ensuring the program is implemented in the strongest way possible at the BPU and that policies will provide long-term certainty for VPPs in New Jersey. Durable statutory authority can complement the BPU’s regulations and ensure VPPs become a permanent tool for improving affordability and grid reliability. 

From executive action on Day One to the next phase of legislative implementation, United has helped position New Jersey to modernize its electric grid by unlocking the energy resources already located in homes, businesses, and communities across the state.