PJM CEO Expresses Concern About Electric Generating Capacity: Higher Prices Have Incentivized Some Generators, But Building Gas Generators Has Slowed, Permitting, Supply Chain Issues Hamper Renewables

On October 21, PJM Interconnection CEO Manu Asthana told the Organization of PJM States-- “I feel more concerned today than I did two years ago about resource adequacy. Load is growing much faster than we had projected then, which even back then was an eye-popping set of numbers.”

“I haven’t seen any forecast of load that allows me to rest and say we’re good,” he said Monday. “We need capacity – a lot of capacity.”

Load promises to grow at increasing rates, policies continue to pressure retirement of existing thermal generation, building of flexible gas generators has slowed in the current environment, and permitting and supply chain issues continue to hamper the construction of renewable projects, he said.

PJM’s recent capacity auction, in which PJM secures commitments from generators to provide electricity in the future, produced higher than usual prices. 

Those prices have thus far served their purpose of incentivizing some generators to delay retirement and others to consider investments in new generation, he said.

“We don’t have a ton of time – this load is coming upon us rapidly,” Asthana said. “We’re talking about our way of life and our dominance as a global superpower. So we take this obligation to serve this load that is coming in very seriously.”

Click Here for PJM's complete statement.

NewsClips:

-- Utility Dive: Power Plant Owners Group Backs PJM Electricity Generation Capacity Auction Delay But Warn Of Waning Investor Confidence

-- Utility Dive: PJM Floats Options For Fast-Track Interconnections For Shovel-Ready Electric Generation Projects 

Resource Links:

-- PJM Interconnection Winter Outlook: Adequate Power Supplies Available Under Normal Conditions; PJM Delays Next Power Auction After Prices Spike  [PaEN]

-- PJM Electricity Auction Price 9 Times Higher Than Previous Auction-- $269.92/MW-Day For 2025/26 Delivery Compared To $28.92/MW-Day In 2024-25; Extreme Weather Risk Big Factor  [PaEN]

-- PennFuture: Dramatic PJM Electricity Price Increases Due To Forced Outages Of Gas Power Plants; Huge Backlog Of New Generation Projects; Demand Growth Driven By Data Centers, Cryptocurrency Mining  [PaEN]

-- Natural Resources Defense Council: The Cost Of Slow-Walking Clean Energy Can Be Seen In Latest PJM Electricity Prices  [PaEN]

-- Spotlight PA: No One Is Using $2.6 Billion Hydrogen, Natural Gas Tax Credit, Shapiro Wants To Rewrite The Law To Boost Electricity Production 

-- Sen. Yaw To Introduce Bills To Establish PA Baseload Energy Development Fund Based On Texas Model; And Have One Permit For Power Plants  [PaEN]

-- PA House Republicans Announce Energy Package, Including An Energy Advocate Within DEP To Veto Any Action That Would Impact PA’s Energy Portfolio And An Independent Energy Office With The Same Power  [PaEN]

[Posted: October 23, 2024]  PA Environment Digest