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…...
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 bring stability to the market after last year’s unprecedented ninefold price surge.
Across the U.S., accelerating electrification and large-load growth driven by data center expansion are contributing to higher demand projections, while generator retirements are…Read the full report…...
Across the U.S., accelerating electrification and large-load growth driven by data center expansion are contributing to higher demand projections, while generator retirements are outpacing the addition of new supply. These converging trends are tightening reliability margins and increasing the risk of resource adequacy shortfalls.
PJM Interconnection LLC, which operates the grid across 13 states and the District of Columbia, has proposed a price cap and floor for its upcoming capacity market auctions for the 2026/2027 and 2027/2028 delivery years. Though intended as a temporary measure to restore stability to the…Read the full report…...
PJM Interconnection LLC, which operates the grid across 13 states and the District of Columbia, has proposed a price cap and floor for its upcoming capacity market auctions for the 2026/2027 and 2027/2028 delivery years. Though intended as a temporary measure to restore stability to the capacity market, the move has raised concerns about market distortion by artificially inflating prices and stifling investment signals.
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…...
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.
The New England region relies on imported liquefied natural gas (LNG) in the winter to meet natural gas demand due to an inadequate gas pipeline network. The reliance on imports is increasingly fraught as the region competes in the global market where high and volatile prices pose supply risk and pricing uncertainty.
PJM Interconnection LLC’s capacity market auction for the 2023-2024 delivery year cleared at $34.13 per megawatt-day (MW-day), which is nearly 32 percent lower compared to the 2021 auction and the lowest in almost a decade. The auction results reflect a low-carbon resource mix, with a growth of more than 5,000 cleared megawatts of carbon-free resources, according to the grid operator, which operates across 13 states and the District of Columbia.
