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The largest U.S. power grid, PJM Interconnection, could lose up to 58,000 MW of power generation capacity, mostly from fossil fuels, by the end of this decade, potentially raising prices for consumers, according to a report released this week. . from PJM’s Independent Market Monitor.
More than 33,000 MW of electricity is at risk of retirement due to a price drop of $49.06/MWh in the region’s capacity market in 2023 – the largest annual price drop since the creation of PJM Markets in 1999 – as both coal and natural gas prices were declining. lower in 2023 than in 2022.
Another 19.6K MW are at risk of early retirement due to state and federal regulatory requirements, the report says.
PJM’s total estimate exceeds last year’s expected power market loss by about 18,000 MW.
The report warns that retirements could increase utility costs for consumers in the region, which stretches from the mid-Atlantic to Chicago, unless PJM can secure adequate replacement capacity before 2030.
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