New Jersey Energy Master Plan
A 1987 state law requires New Jersey to develop an Energy Master Plan (EMP) every 10 years and to update it every three years. Prior to now, however, the most recent EMP was published in 1991 and updated in 1995 in response to the laws that brought competitive wholesale electricity markets to the region.
In the fall of 2006, recognizing the challenges that the state would face in meeting its energy needs and climate change goals at the same time, Governor Jon Corzine launched the process that resulted in the new Energy Master Plan released in October 2008. Its purpose is to ensure that New Jersey residents, businesses, and industries have a reliable supply of electricity and heating fuels at reasonable prices, consistent with the state’s environmental priorities.
New Jersey passed the 2007 Global Warming Response Act, limiting global warming pollution to 80 percent below current levels by 2050. This legislation became a major driver in the development of the EMP, as the state recognized it cannot simply dictate the desired result. Many others may make decisions that can help or hinder the state’s efforts—fuel suppliers, power plant owners, the regional electricity power pool (known as PJM), the Federal Energy Regulatory Commission (FERC), and even other countries. Therefore, the 2008 Energy Master Plan was crafted with full recognition of what the state can do directly to affect the cost and reliability of energy supplies; what the state is constrained to do indirectly by influencing the decisions of PJM, the FERC, and power plant owners and developers; and which factors are outside the state’s control.
In addition, forecasts show that unless the state acts decisively to reduce energy demand and increase the supply of low carbon emitting, reliable, and reasonably priced energy, it faces an increasingly costly and unsustainable energy future. If no action steps are taken, and the "business as usual" scenario prevails, in 2020 New Jersey’s homes and businesses will use 97,800 gigawatt-hours of electricity and over 542 trillion British Thermal Units (BTUs) of natural gas and heating oil at a cost of $30.7 billion.
The series of action items proposed in the Energy Master Plan aim to reduce the State’s energy consumption 20 percent by 2020, reduce global warming pollution to 1990 levels by 2020, and ensure that the energy infrastructure provides reasonably priced and reliable energy to New Jersey’s homes and businesses.
The plan analyzes New Jersey’s current and projected future energy challenges. It describes a series of goals and action items aimed at putting the state on track to successfully meet theses challenges while developing clean energy industry as a cornerstone of the state’s economy.
You can read more about the Energy Master Plan and access its full text on the state’s dedicated website.
