PJM Power Auction Sees Capacity Prices Surge Over 800% to Record High $270 per MW-day

Jul 31, 2024, 10:55 AM

The recent PJM power auction has resulted in a significant increase in capacity prices, with a surge of over 800% year-over-year. The auction, which determines the pricing for securing power supply, saw prices rise to a record high of approximately $270 per megawatt-day for the 2025-26 period, compared to around $29 for the 2024-25 period. This sharp increase is expected to impact nearly 20% of Americans, including those in Baltimore and Virginia, leading to higher electric bills. The PJM grid, which spans 13 states from Illinois to New Jersey, plays a crucial role in shaping the electric mix for a large part of the US. The auction's outcome reflects the growing electricity bottlenecks and highlights the importance of addressing these issues in the coming decade.