US PJM Grid Demand Nears Winter Record

PJM Grid Demand to Approach Winter Peak

Power demand on the PJM Interconnection, the largest U.S. electric grid, is forecast to peak at 141 gigawatts (GW) on Friday, just shy of its all-time winter record. The operator serves 67 million people across 13 states and Washington, D.C.

Situation Overview

Despite a snowstorm and frigid weather, PJM has avoided ordering rolling blackouts. The grid's performance is being closely watched due to rising power consumption from data centers. The initial forecast of 148 GW was revised down as temperatures were warmer than expected and data centers were encouraged to use backup generators.

Economic and Market Impact

Spot wholesale electricity prices, which had spiked above $3,000 per MWh earlier in the week, fell to around $173 per MWh on Friday morning. Generation outages also improved, declining from over 22 GW to a projected 15 GW, further easing market pressure.

Summary and Outlook

The PJM grid has demonstrated resilience under extreme conditions. While demand did not break the record, the event highlights the growing challenge of balancing supply with increasing demand from sources like data centers. Grid stability and pricing will remain key focus areas.

FAQ

Q: Why was the power demand forecast lowered?
A: Due to warmer-than-expected temperatures and data centers utilizing backup power.

Q: Did the PJM grid experience blackouts?
A: No, the operator managed the high demand without ordering any rolling blackouts.

Source: Reuters via Investing.com