Payouts on PJM power grid fall 15% in latest power auction
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Suppliers to the grid run by PJM Interconnection will be paid 15% less next year to be on standby and provide backup electricity, according to the results of an auction released Monday.
Power generators to the largest U.S. grid operator will get $28.92/MWd to provide capacity over a 12-month period starting in mid-2024, down from $34.13/MWd in the previous auction held in June.
The auction had ~2K fewer MW worth of bids compared to the June auction, marking a third straight year of declines - a trend that PJM officials warned could raise concerns about reliability on the grid as the shift away from coal-fired power accelerates.
PJM Interconnection serves 65M people from New Jersey to Illinois; among its 1,000-plus members are companies affiliated with American Electric Power (AEP), AES Corp. (AES), Algonquin Power (AQN), Allete (ALE), Alliant Energy (LNT), Altus Power (AMPS), Avangrid (AGR), Brookfield Energy (BAM), Consolidated Edison (ED), Constellation Energy (CEG), Consumers Energy (CMS), Dominion Energy (D), DTE Energy (DTE), Duke Energy (DUK), Evergy (EVRG), Exelon (EXC), New Jersey Resources (NJR), NextEra Energy (NEE), PPL Corp. (PPL), PSEG (PEG), Southern Co. (SO), UGI Corp. (UGI)
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PJM published an analysis last week warning it could face a serious shortfall in electric generating capacity in coming years as traditional generator retirements outpace additions.