New Jersey Utilities Association President and CEO Richard Henning took time out Monday to answer some questions about the state of energy in New Jersey with ROI-NJ.
ROI-NJ: What do you think the impact of the Trump administration will have on renewables in NJ?
Richard Henning (RH): The administration has already pulled all funding for wind projects and has put a hold on already approved wind projects for further review by the administration. Solar projects continue to flourish throughout the state and certainly other decarbonization efforts such as nuclear, hydrogen, and renewable natural gas need to be considered for New Jersey to meet its future goals.
ROI-NJ: What has been the reaction from consumers with regard to the 20% price hike due to be implemented in June?
RH: There is no surprise that New Jersey residents are not very excited about having to pay 20-percent more for power generation beginning June 1st this summer. We’ll know their true reaction when they receive their first bills in July but suffice to say, NJUA and its members will attempt to educate consumers regarding their consumption and inform them of ways to save energy and save money through energy efficiency programs.
ROI-NJ: What other areas are data centers being rolled out besides Bergen and Hudson counties?
RH: New Jersey’s data center market is experiencing steady growth and attracting significant attention from organizations looking to deploy colocation solutions. As one of the top five data center markets in the United States, New Jersey offers unique advantages that make it a vital hub for data center operations. However, site selection challenges exist due to limited available land and real estate options. Despite these challenges, the New Jersey data center market continues to thrive, with 49 colocation centers spread across 14 areas, including a concentration in Hudson County.
ROI-NJ: How would you characterize New Jersey’s power grid at this time — better than most states? In need of infrastructure overhaul?
RH: New Jersey’s electric grid is under increasing strain, and it’s sparking critical conversations about the state’s energy future. With rising energy demands driven by scorching summer heatwaves, ambitious electrification goals, and economic growth, ensuring the reliability and efficiency of the electric grid is key to maintaining the state’s economy. Frequent heat waves, driven by climate change, are pushing grid infrastructure to its limits.
Prolonged periods of high temperatures mean 24/7 operation of air conditioning units and increased energy use, compounding stress on the aging infrastructure. Much of New Jersey’s grid infrastructure requires upgrades to handle not only immediate energy surges but also projected long-term demand. Recent rate hikes reflect investments directed toward modernizing grid systems, as utilities aim to improve reliability.
ROI-NJ: To meet demand, where will extra capacity come from?
RH: For energy developers, New Jersey’s grid scenario presents both challenges and significant opportunities. The state’s ambitious renewable energy targets, along with its push for electrification and decarbonization, open the door for innovative technologies, investments in infrastructure resilience, and public-private partnerships. Collaboration between energy developers and state agencies is essential to ensure smarter investments in energy infrastructure. Incentive programs for grid reinforcement, renewable project development, and technology innovation such as nuclear, hydrogen and renewable gas remain pivotal in addressing systemic challenges.
