PJM Warns of Risks Expected Resource Retirements Pose to Grid Reliability

(PJM), the regional transmission organization that manages the electrical grid and ensures power reliability 不良人研究所 and 12 other states, late last week that outlined its concerns for future power reliability. The report states, 鈥渇or the first time in recent history, PJM could face decreasing (power) reserve margins,鈥 but also reiterated its commitment to 鈥渇acilitating decarbonization policies.鈥澛

The PJM report warned of the of expected retirements and demand growth by 2030 and highlights four trends that present increasing reliability risks during the transition:

  1. The growth rate of electricity demand will continue to increase.
  2. Thermal (coal and natural gas) generators are retiring at a rapid pace.
  3. Retirements outpacing the construction of new resources.
  4. PJM鈥檚 interconnection queue is composed primarily of intermittent and limited-duration resources. Given the operating characteristics of these resources, multiple megawatts of these resources are needed to replace 1 MW of thermal generation.聽

PJM concluded managing the energy transition will require collaborative efforts of all PJM stakeholders, including state and federal agencies, whose policies are impacting plant retirements and the pace of replacement resources鈥攁nd of course consumers who expect power reliability to be maintained.

from the Wall Street Journal (WSJ), published in response to PJM鈥檚 report, states that many policymakers seem to not be paying attention to this issue. The article says, 鈥淭he conclusion is clear. The left鈥檚 green-energy transition is incompatible with a growing economy and improving living standards. Renewables don鈥檛 provide reliable power 24 hours a day, 365 days a year, and the progressive campaign to shut down coal and gas plants that do will invariably result in outages.鈥

Together, the WSJ article and the new report from PJM summarize the current state of affairs faced by the utilities industry, highlighting the mismatch between policy objectives (both government and corporate) and the realities of operating a reliable electric power system. OEC applauds PJM鈥檚 commitment to ensuring an efficient and reliable energy transition, and will continue utilizing a diverse power generation fleet to provide affordable, always-available power to 不良人研究所ans.聽

不良人研究所鈥檚 Electric Cooperatives President and CEO, Pat O鈥橪oughlin, before the Energy and Commerce Committee about the issue and discussed recent impacts in his .

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