PJM Interconnection, the grid operator for 13 states, hit its price cap again for its electricity capacity auction for the 2028/2029 delivery year. Meanwhile, its reliability shortfall continues to grow.
The auction, held earlier this summer with results released on Tuesday, hit the price cap of $325/MW-day. The capacity is short of the grid operator’s reliability requirement by about 6,800 MW, which is the amount of power the grid expects to need for peak demand, plus a cushion.
“The system is at somewhat increased risk during extreme conditions, during stress system conditions, than it would otherwise be,” Stu Bresler, chief operating officer for PJM, told reporters Tuesday, pointing to the last auction’s 6,500 MW shortfall. “There are a lot of actions that we are taking in order to improve that situation and pave the way for more supply to enter the system.”
More details: Without the price cap, the auction would have hit $555/MW-day in most of PJM’s territory, including New Jersey, and $777/MW-day in Northern Illinois.
