The Federal Energy Regulatory Commission (FERC) recently approved a plan devised by PJM Interconnection to expedite the development of power plants within the mid-Atlantic grid. Despite its approval, this move has stirred controversy, particularly among clean energy advocates, who argue that it disproportionately favors natural gas facilities.
PJM Interconnection, a major grid operator headquartered in Pennsylvania, presented this proposal in response to concerns about potential power shortages as early as 2026. With the retirement of coal-fired and aging nuclear plants, PJM anticipates a growing electricity demand, a situation exacerbated by advancements in technology and shifts in industrial needs.
The criteria established by PJM for eligible projects focus on those ready for immediate construction. These projects must offer a high power capacity and availability during periods when the grid could face shortages. The plan specifies an open call for proposals, with a maximum of 50 to advance to a feasibility study.
Clean energy proponents have expressed concerns that this process preferentially accelerates gas-fired power projects. They argue that the bottleneck in approving wind, solar, and battery storage projects is a significant factor in the current reliability challenges. Data shows more than 97% of proposals awaiting PJM’s approval are for renewable energy sources, with a mere 3% for natural gas.
This development comes at a time when electricity demand is surging following a decades-long plateau. Factors contributing to this increase include the rising energy needs of tech companies working in artificial intelligence and the energy-intensive cryptomining sector. Additionally, societal electrification and initiatives for domestic manufacturing resurgence spurred by bipartisan political support add to the demand.
Some industry critics, including the Ohio Consumers' Counsel Office, question the transparency and accountability of PJM's selection process, voicing concerns over whether it ensures the most cost-effective and efficient energy solutions for consumers.
PJM manages the electric grid across a broad geographic region encompassing Delaware, eastern Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington, D.C. The grid also touches parts of Illinois, Indiana, Michigan, and North Carolina.
While the FERC's decision marks a pivotal moment in addressing grid reliability issues, it underscores the ongoing tension between traditional and renewable energy resources. The challenge lies in balancing immediate grid needs with long-term investments in sustainable energy solutions.
To further explore this issue, it's critical to continue monitoring PJM’s project prioritization and seek a diversified approach that facilitates a reliable transition to cleaner energy while maintaining grid robustness.