2024 PJM Interconnection Outlook
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The 2024 PJM Interconnection outlook hinges on several key issues – capacity market reforms, maintaining adequate supply in the face of power plant retirements (especially coal-fired plants), and the advancement of a new transmission planning framework. Here’s a look at how PJM is responding to these and similar issues.
Details Around the 2024 PJM Interconnection Outlook
PJM oversees the power grid across 13 Mid-Atlantic and Midwest states, as well as Washington, D.C. Again, maintaining adequate generation capacity, as well as enough reserve power, is of paramount importance. One particular blow to the interconnection is Talen Energy’s planned retirement of its 1,282-MW Brandon Shores power plant near Baltimore, which was announced in 2023. In response, PJM has authorized roughly $800 million worth of transmission projects.
A related issue is capacity market reform. The Brandon Shores retirement is indicative of an ineffective market. As such, PJM developed 2 proposals in an effort to revamp its capacity market – only one of which was approved by the Federal Energy Regulatory Commission (FERC). In response, PJM is now working to update the reform proposals based on the feedback received.
The interconnection has also launched a new generation integration process designed to accelerate the addition of new power supplies into the grid. This is critical, especially when you consider that 90% of its interconnection requests over the next few years involve renewable energy or energy storage technologies.
Another PJM initiative is to facilitate the shift to a scenario-based, long term transmission planning process. The goal is to move away from reactive planning and toward a more proactive framework for maintaining reliability. While the final result is still under development, this represents the most advanced system planning PJM has ever attempted, which, according to experts, is long overdue.
There’s no denying that the 2024 PJM Interconnection outlook will involve some tough choices. Here’s hoping PJM is up to the challenge!
