Utility Dive•8 days ago
PJM capacity prices hit record high as grid operator falls short of reliability target
Key Takeaway
PJM's record-high capacity prices and critical 6.6 GW shortfall create urgent opportunities for developers to bring new generation online, while signaling higher costs and potential reliability challenges for large power consumers.
AI Summary
- •PJM faces a significant 6.6 GW capacity shortfall, which could trigger a backstop procurement to ensure grid reliability.
- •This shortfall has driven PJM capacity prices to record highs, signaling strong revenue potential for new generation projects.
- •Large power consumers in PJM should anticipate increased electricity costs due to elevated capacity prices and potential reliability challenges.
- •The potential for a backstop procurement indicates PJM may implement new or modified market mechanisms to address its capacity needs.
Topics
capacity-marketpjmpolicy