Utility Dive•about 1 month ago
‘Clear warning signs’ as PJM wholesale power costs jump 54% in one year
Key Takeaway
PJM's rapidly increasing wholesale power costs and capacity shortfalls, driven by data center growth, signal urgent challenges for developers and large consumers regarding pricing and reliability.
AI Summary
- •PJM wholesale power costs have surged 54% in the last year, indicating significant financial pressure for large power consumers and developers.
- •PJM's capacity market faces a growing shortfall against its reserve margin targets, signaling potential reliability issues and higher future capacity prices.
- •The market monitor explicitly states that power prices will continue to rise until the substantial load growth from data centers is effectively addressed.
Topics
capacity-marketdatacenterpjmpolicy
Article Content
Also, PJM’s last two base capacity auctions show a growing shortfall compared to its reserve margin targets, according to the grid operator’s market monitor. Prices will continue rising until large data center loads are addressed, it said.