INSIGHTSSERIES
Power & Utilities | Wholesale Markets
July 28, 2025
PJM Capacity Auction Prices Rise as Supply-Demand Balance Tightens
The clearing price came in at the $329.17/MW-day price cap, up 22 percent from last year, and the highest in the history of PJM’s capacity auction.
PJM Interconnection LLC’s capacity market auction for the 2026/2027 delivery year cleared at $329.17 per megawatt-day (MW-day), nearly 22 percent higher than the clearing price in the previous auction. The clearing price hit the cap recently approved by the Federal Energy Regulatory Commission (FERC) to…Read the full report
Key Takeaways
- The largest U.S. grid operator’s capacity auction for the 2026/2027 planning year cleared at the $329.17/MW-day price cap, marking the second consecutive year of record-high prices.
- The auction secured sufficient resources at a total cost of approximately $16.1 billion, up 9.5 percent from the previous auction.
- The total amount of new generation and generation uprates rose for the first time in the last four auctions.
