Amid ongoing improvements to interconnection processes across the U.S., current queue backlogs and the rapid increase in new resources seeking to connect to the grid are driving innovative solutions.
The rapid surge in power demand from data centers has prompted calls for additional capacity to maintain grid reliability. Unlike “electrify everything” initiatives, such as transportation electrification, which are part of broader policy goals and planned through regulatory proceedings, large loads like data centers have emerged unexpectedly.
PJM Interconnection LLC’s capacity market auction for the 2025/2026 delivery year cleared at $269.92 per megawatt-day (MW-day), about nine times the clearing price in the last auction. The significantly higher prices resulted from a reduced electricity supply, mainly due to numerous generator retirements, coupled with rising demand and the implementation of market reforms, according to PJM, which operates across 13 states and the District of Columbia.
Hurricane Beryl, the first major hurricane of the 2024 Atlantic hurricane season, has brought new attention to the fragility of the Texas power grid and the pressing need to strengthen utility infrastructure to ensure reliability. The hurricane made landfall in the Texas Gulf Coast, a key hub for the U.S. energy industry, on July 8.
Recent policy and regulatory measures concerning competitive retail electricity markets are increasingly focused on enhancing oversight and transparency. New state actions strive to strengthen these markets with improved regulatory oversight and consumer protections to prevent unsavory practices by competitive suppliers.
A growing number of utility regulators across U.S. states are reviewing natural gas planning strategies to consider the effects of decarbonization and electrification policies on the gas system. Amid shifting policy and changing market conditions, regulators are exploring new tools to evaluate gas infrastructure investments.
The growing interest in carbon capture and storage (CCS) projects to address atmospheric emissions has drawn attention to the crucial role of pipelines in transporting carbon dioxide (CO2) to sequestration sites, highlighting concerns over safety issues. CCS involves the capture of CO2 from the emissions of industrial processes before they are released into the atmosphere for storage in subsurface geological formations.
The enactment of the Infrastructure Investment and Jobs Act (IIJA) in 2021, also known as the Bipartisan Infrastructure Law, and the Inflation Reduction Act (IRA) in 2022, has unleashed billions in federal funding for the
energy sector. These include infrastructure improvements, clean energy deployment, transportation electrification, grid reliability, energy efficiency, and cyber security. Regulators across U.S. states have opened dockets requesting reports on utility actions or initiated proceedings to gather comments on utility opportunities.
Advanced nuclear solutions are garnering broad support with a slate of initiatives including funding research, developing regulatory frameworks, and planning or constructing advanced reactors. The ability of nuclear energy to produce carbon-free power is increasingly considered critical for decarbonizing the power sector to fight climate change while ensuring a reliable electricity supply.
The U.S. Senate approval of President Biden's three nominees to serve on the Federal Energy Regulatory Commission (FERC) brings the agency to its full complement of five commissioners. The move comes as FERC is considering key issues including those pertaining to electric reliability and transmission rules, liquefied natural gas export projects, natural gas pipelines, and energy markets.
Regulatory developments are shaping the trajectory of carbon markets amid mixed outcomes in recent allowance auctions. California, Quebec, and Washington are considering a shared carbon market highlighting the importance of collaborative efforts to tackle climate change, while Pennsylvania lawmakers have proposed a state-specific cap-and-invest program.
New and expanded federal tax credits, along with funding for the U.S. Environmental Protection Agency’s Solar for All residential program, have set the stage for further growth in the community solar industry. Several states have taken action to establish or expand community solar programs. Also known as shared solar, community solar allows multiple energy customers to participate in projects that are remotely located and receive credits to lower their electricity bill.