INSIGHTSSERIES
Power & Utilities | Wholesale Markets
August 13, 2024
PJM Capacity Auction Prices Surge to Record Highs Amid Supply Concerns
Auction clears at $269.92/MW-day, reflecting generator retirements, rising demand, and market reforms.
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…Read the full report
Key Takeaways
- The largest U.S. grid operator’s annual capacity auction for the 2025/2026 planning year cleared at $269.92/MW-day, the highest in the history of PJM’s base residual auction.
- PJM procured adequate resources at a cost of about $14.7 billion, up from $2.2 billion in the prior auction for the 2024/2025 delivery year.
- This marks the fourth consecutive auction in which capacity supply offered has declined, with offers dropping by over 13 GW from the previous auction.
