Utility Dive•about 1 month ago
PJM board calls for backstop auction in data center interconnection plan
Key Takeaway
PJM is actively developing new mechanisms, including a backstop auction for data centers and potential adjustments to capacity market pricing, to address grid integration challenges and market stability amidst rapid load growth.
AI Summary
- •PJM's board is proposing a 'backstop auction' as part of its data center interconnection plan, indicating efforts to streamline or accelerate grid connections for rapidly growing data center loads.
- •The board is also considering extending a price collar on capacity auctions, which could impact future capacity market revenues for developers and influence energy costs for large consumers like data centers.
- •These actions highlight PJM's proactive approach to managing the significant grid impacts and interconnection challenges posed by the surge in data center development within its territory.
Topics
capacity-marketdatacenterinterconnectpjmpolicyqueuetransmission