PJM Highlights $11.8 Billion Transmission Plan Amid Rising Power Demand

PJM Interconnection on April 17 released its 2025 Regional Transmission Expansion Plan report, outlining a significant pipeline of transmission investments and planning reforms aimed at maintaining grid reliability across its multi-state footprint. The grid operator identified 122 new baseline transmission projects with an estimated cost of $11.8 billion to address shifting power flows and system needs. In addition, the board approved 445 network upgrades totaling about $959.1 million to support the interconnection of new generation resources.

The report underscores a rapidly evolving demand outlook, driven largely by the expansion of data centers, alongside increased electrification of transportation and heating and a modest rebound in manufacturing activity. PJM now expects summer peak demand to grow at an annual rate of 3.1 percent over the next decade, a notable increase from its prior forecast. This rising demand is placing added pressure on a system already navigating structural changes on the supply side.

Generator retirements continue to accelerate, with PJM receiving 30 deactivation notifications totaling over 6.5 GW in 2025 alone. Many of these retirements are linked to aging infrastructure and environmental policy pressures. At the same time, the resource mix is shifting, with solar accounting for roughly 36 percent of new interconnection requests. This transition toward inverter-based resources presents operational challenges, particularly as traditional generators that provide essential reliability attributes exit the system.

In response, PJM is advancing a series of planning and market reforms to address near-term reliability risks. The grid operator is implementing a cycle-based interconnection study process that prioritizes projects ready to move forward, while encouraging less-developed proposals to withdraw. Additional initiatives include efforts to streamline capacity interconnection, improve the use of existing grid rights, and enhance the efficiency of project approvals.

The report reflects growing pressure on the system from rising demand and resource turnover, prompting PJM to accelerate infrastructure investment and refine planning tools to maintain reliability in the years ahead.