PJM Forecast Shows It’s Ready for Summer Demand, But Also Bracing for Record Highs
MORGANTOWN — PJM Interconnection, the power grid operator serving 13 states including West Virginia, said it forecasts it has sufficient electrical generation capacity to meet peak summer demand.
However, this season also marks the first time in its annual assessment that available generation capacity may fall short of required reserves.
“This outlook at a record peak heat scenario reflects our years-long and mounting concerns as we plan for enough resources to maintain grid reliability,” said Aftab Khan, executive vice president of operations, planning & security. “All resources within PJM’s footprint should be prepared to respond when called upon.”
PJM is predicting a summer peak of 154,000 megawatts, and reported it should have adequate resources to meet the demand. Last year’s summer peak was about 152,700 MW, and in 2023 it was 147,000 MW.
The record summer peak load was 165,563 MW in 2006. PJM has about 179,200 MW of generation capacity this summer.
The National Weather Service predicts hotter-than-normal summer conditions, especially in the Atlantic seaboard states, and it PJM is preparing for more extreme scenarios featuring record demand topping 166,000 MW.
In this case, it would call on “contracted demand response resources.” Demand response programs pay customers who have opted to reduce their electricity use in times of system emergencies. It has about 7,900 MW of contracted demand response.
Facing the future
PJM continues to voice concerns about the supply and demand imbalance driven by generator retirements and the slow build of new resources in the face of accelerating demand growth.
PJM said the organization and its stakeholders have taken a number of proactive measures to bring new generation resources online and maximize the availability of existing resources in the short and long term.
Among them:
∫ Interconnection Process Reform: It has streamlined its process through which new generation connects to the grid. Additional automation in the interconnection process and increased staffing over the past several years have improved quality while reducing the backlog by 60%. On April 10, PJM announced a multiyear collaboration with Google and Tapestry to deploy AI-enhanced tools to further streamline PJM’s interconnection process.
∫ Reliability Resource Initiative: On May 2, PJM announced the projects chosen for this one-time program to boost reliability in the PJM footprint. It includes 51 shovel-ready generation projects with 9,300 MW in capacity that can come online by 2030 or 2031.
∫ Surplus Interconnection Service: PJM obtained Federal Energy Regulatory Commission approval to streamline the use of the unused portion of interconnection service for facilities that cannot or do not operate continuously, every hour of every day, year-round — such as adding battery storage to a renewable site.
∫ Capacity Interconnection Rights Transfer: A reform package endorsed by PJM stakeholders and currently pending review by FERC would facilitate an expedited interconnection process for a replacement resource seeking to use the capacity interconnection rights of a retiring resource.
∫ Demand Response Availability: FERC on May 5 approved a PJM proposal that improves dispatch and accreditation of demand response resources. The proposal broadens the window for demand response participation from a limited set of hours during summer and winter to around-the-clock throughout the year, enhancing grid reliability and resource adequacy.