Electricity capacity prices skyrocketed 900% in latest auction
ANNAPOLIS, MD – Today, Maryland State Senator Ron Watson and Maryland Delegates Adrian Boafo, Lorig Charkoudian, David Fraser-Hidalgo, and Natalie Ziegler released a joint statement on the skyrocketing electricity prices announced last week by Maryland’s electric grid operator, PJM. Prices in its annual capacity auction rose over 900 percent, from $28.92 per megawatt-day to $269.92. The price increase was most significant in Maryland, rising to $466.35. Next June, most Maryland ratepayers will likely see electricity bill increases well over 30 percent.
These prices are driven in large part by the grid operator’s years-long issues in getting more generating resources connected to the grid. At the end of 2023, PJM had 3,309 projects – mostly solar and battery storage – waiting to connect to the grid and provide cheaper power to the region. PJM earned a national-worst “D-” in a recent scorecard from Advanced Energy United of all grid operator interconnection processes earlier this year, with developers forced to wait longer in PJM than any other region in the country. These clean energy projects together have enough capacity to replace all the generation currently operating in the PJM system, even after planned fossil fuel plant retirements. Because of this backlog, new renewable projects cannot even apply to bring power to Maryland consumers until 2026.
The five lawmakers released the following statement:
“It is unacceptable that Maryland households and businesses will have to pay more because of our grid operator’s failure to get energy projects connected to the power grid in a timely manner. Because of this mismanagement, renewable energy makes up only 2 percent of the available capacity – much less than our neighboring regions, who have brought on far more renewable, job-creating clean energy and kept prices low for consumers."
“Instead of spending a ton of money importing fossil fuels, we’d be better off taking advantage of the plentiful sunshine and wind we have right here in Maryland to improve grid reliability and lower energy costs."
“Clean energy is not just a climate solution; it’s an economic opportunity. PJM’s failure to integrate these resources effectively is leaving Maryland families shouldering the burden of high energy costs. We must prioritize a more efficient and fair grid planning process.”
Click here to learn more about Advanced Energy United’s work in Maryland advocating for transmission and interconnection.