PJM’s inability to quickly connect new large-scale energy sources to the grid cost consumers $7 billion in latest capacity auction, found new Grid Strategies analysis
WASHINGTON, DC – Electricity prices across the Mid-Atlantic and Midwest are set to soar, but a new analysis finds that consumer electricity costs could have been reduced by as much as $7 billion dollars in PJM Interconnection’s latest capacity auction had the grid operator’s interconnection process been working more efficiently to bring needed supply online to match demand.
The finding comes from a new analysis from the consulting firm Grid Strategies, “Penny-wise and pound foolish:PJM’s Capacity Auction Demonstrates the Cost Imperative of Simplified and Speedy Interconnection.” The report was prepared for national business association Advanced Energy United, and explores PJM as a specific case study of a broader national trend.
