PJM's energy emergency | Factor This Policycast

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PJM Interconnection, the largest wholesale electricity market and grid operator in the United States, is at a crossroads.

Demand is surging across its footprint, accelerated by the needs of artificial intelligence data centers, and PJM is struggling to keep up- to put it lightly- spurring some rather existential examinations of the grid operator’s processes, markets, and even its governance. It’s clear that changes are needed, but what those changes should be and who should have input- like PJM states, for example- is much murkier.

There’s no time to waste. PJM predicts a 6.8 gigawatt (GW) capacity shortfall as soon as 2028, underscoring the need to bring more generation online as soon as possible. Many of the 67 million customers under PJM’s 13-state-plus-Washington-D.C.- purview would agree. They’re seeing electricity prices march upward, in part because recent power auctions got so out of control that PJM, with federal approval, had to cap them.

Interconnection bottlenecks and market barriers have also inhibited deployment of some of the cheapest and often quickest-to-power solutions, like renewables, energy storage, and demand-side resources. PJM is trying to make it easier for data center developers to come online with their own power supply- but how should that work?

This episode of the Factor This Policycast, presented in partnership with Advanced Energy United, tackles the PJM energy emergency. How can the nation’s largest grid operator modernize its operations in time to avoid a capacity cliff while simultaneously satisfying a diverse group of stakeholders clamoring for affordability?

Hosted by Factor This content director Paul Gerke, the show features special guests Adam Stern of clean energy developer Clearway Energy and Kimaya Abreu of virtual power plant operator Voltus, alongside Advanced Energy United senior director Jon Gordon, a nationally sought-after PJM expert. The assemblage addresses PJM's looming capacity shortfall, identifies roadblocks to speed-to-power, and opines on how to mitigate the impacts of large load growth on the system. Also up for debate: PJM's backstop auction, interconnection queue, and governance.

Energy policy on your mind? Check out all episodes of the Factor This Policycast