The details: All eyes are on the country’s largest grid operator as it moves to clinch future generation (and demand response). For this auction, prices are capped at around $325/MW-day. For perspective: These limits sat at around $29/MW-day for the 2024/2025 auction. The latest auction ends on July 7, and PJM will post the results on July 14.
The signal: “While the price cap and floor may reduce volatility, they do not solve the underlying supply-demand imbalance,” wrote Adam Keech, PJM’s senior vice president of market services. “Addressing that challenge requires either bringing more resources onto the system or moderating the pace of demand growth.”
Speaking of: Today, PJM’s board is voting on two key proposals: 1) a sprint for new capacity to close the expected gap for 2028/2029 and 2) a “Connect and Manage” model for certain large loads. PJM expects to file these proposals with FERC next month.
Molly Glick
Energy Central Team
Mon, Jun 29