Utility Dive•6 months ago
PJM capacity prices hit record high as grid operator falls short of reliability target
- •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.
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