PJM Interconnection is planning to move up its “backstop” reliability auction to September this year rather than waiting until 2027, as the grid operator faces increased pressure to address the surging power demand from data centers.
“Waiting until 2027 to execute the centralized procurement, considering the pace of demand from new large loads, presents a heightened reliability risk to PJM,” Paula Conboy, chair of PJM’s board of managers, said in a letter addressed to its stakeholders dated Tuesday.
The change “will mitigate the near-term reliability risk while not precluding future bilateral contracting opportunities for additional resources to fulfill new large load demand for future delivery years,” Conboy added.
PJM, which operates the nation’s largest grid, has faced criticism for its long delays in connecting large data centers with power generation as energy demand surges. The grid operator serves 67 million people in parts of 13 states and Washington, D.C.
