PJM Grid Hits Record High Signal Costs of Reliable Power
July 31, 2024
The auction produced a price of $269.92/MW-day for much of the PJM footprint, compared to $28.92/MW-day for the 2024/2025 auction, which is almost nine times the price of the year before. Capacity auction prices fluctuate annually based on the need for investment in generation resources. This year’s auction procured 135,684 MW for the period of June 1, 2025, through May 31, 2026.
The total Fixed Resource Requirement (FRR) obligation is an additional 10,886 MW for a total of 146,570 MW. The total procured capacity in the auction and resource commitments under FRR represents an 18.5% reserve margin, compared to a 20.4% reserve margin for the 2024/2025 Delivery Year.
