All articles tagged with #grid reliability
FERC Chair Laura Swett warned at PJM’s annual meeting that the PJM Interconnection may be ‘too big to function’ due to an unacceptable governance structure and a sprawling footprint amid rising capacity needs driven by data centers, prompting a plan for a July conference to address governance fixes while PJM continues to add generation to meet demand.
PJM Interconnection proposed three broad frameworks to reform its markets to ensure adequate future power supplies: Path A would stabilize the capacity market with long-term contracts, Path B would formalize reliability differentiation across customer classes or regions, and Path C would pivot toward an energy-and-ancillary-services market with capacity acting as a backstop. Stakeholders will discuss these options through 2026 to build regional consensus, with a multi-track rollout possible (A in 2026–2029, B 2027–2030, C 2028+). Analysts expect reforms before the May 2027 capacity auction, amid pressures from rising load (notably data centers) and regulatory price caps.
NERC has issued a rare Level 3 alert warning that data centers can cause abrupt load losses and oscillations that threaten the power grid, ordering seven concrete actions for transmission planners/operators and balancing authorities. Required steps include collecting and sharing detailed computational-load data, updating facility interconnection requirements, revising protection and stability studies, establishing a commissioning/testing process, and installing dynamic fault recorders, with entities due to acknowledge by May 11 and respond by Aug 3. The move highlights growing data-center demand as a key reliability risk amid rising summer peak loads."
President Trump announced the Ratepayer Protection Pledge, drawing major AI and hyperscale companies (Amazon, Google, Meta, Microsoft, OpenAI, Oracle, xAI) to commit to building or funding new generation resources and necessary power-delivery upgrades for data centers, with separate rate structures so American households aren’t on the hook for those costs or for electricity they don’t use. The pledge also calls for coordination with grid operators to improve reliability, workforce development in host communities, and broader steps to lower energy prices while expanding domestic energy capacity and grid resilience as part of a wider energy agenda.
The White House is circulating a draft voluntary compact with major AI data-center developers to curb energy, water and grid impacts from rapid AI infrastructure growth, requiring funding for new power generation and transmission, long-term electricity contracts, and regulatory cooperation to prevent higher household electricity prices; the pact is not final and participants are unclear, but it follows similar commitments from Microsoft and others as the administration seeks to shape data-center expansion without new regulation ahead of the midterms.
A North American Electric Reliability Corporation assessment warns that grid reliability is deteriorating as electricity demand climbs—driven by data centers—while retirement of coal- and gas-fired plants outpaces new generation, increasing the risk of blackouts for tens of millions over the next five years.
The Trump administration, citing reliability concerns and rising electricity costs in the Mid-Atlantic, urges PJM to temporarily overhaul market rules and hold an emergency procurement auction to finance more than $15 billion of new baseload power, offering 15-year revenue certainty, rate protections for residential customers, and data-center cost allocations to speed reliable, affordable power for industry and families.
PJM’s Board outlined a 2026 package of proposals to integrate large-load customers (including data centers) while preserving reliability and affordability. The plan includes load-forecast improvements, options for loads to own a generation or participate in a connect-and-manage framework, an accelerated interconnection track for state-backed projects, a backstop generation procurement process, and a market-review to guide investments. Several actions would be filed with FERC and implemented with ongoing stakeholder input as the region’s supply-demand balance evolves.
A federal judge temporarily lifted the Trump-era suspension of the Coastal Virginia Offshore Wind project, allowing construction to resume—the largest offshore wind project under construction in the U.S.—with 176 turbines expected to power about 600,000 homes and begin dispatch by the end of Q1 2026, highlighting its role in improving grid reliability amid growing demand from data centers.
Vineyard Wind has filed a lawsuit against the Trump administration to overturn a December order pausing construction on its Massachusetts offshore wind project, arguing the suspension was unlawful. The 52-page complaint seeks a temporary injunction to resume work on a project that is about 95% complete, has already generated power, and has spent roughly $4.5 billion, while losing about $2 million daily due to the halt. The case comes as other paused offshore wind projects see judicial rulings allowing resumes, and state officials warn that delaying these projects risks reliability and higher costs for the region’s electricity. The project is under risk of losing its installation vessel if the pause persists past March 31, 2026.
PJM's 2026/2027 capacity auction secured 134,311 MW of generation and demand response, with prices at the FERC cap of $329.17/MW-day, reflecting a response to rising demand and a tightening supply-demand balance, and indicating ongoing investment and reforms in the regional power grid.
The DOE warns that shutting down fossil fuel power plants could increase the risk of blackouts by up to 100 times by 2030, as renewables are seen as less reliable for baseload power, prompting political debates over energy policy and grid stability.
The Trump administration invoked emergency powers to keep the Eddystone Generating Station in Pennsylvania operational, citing grid reliability concerns, despite plans for its closure, amid broader debates over fossil fuel plant retirements and energy policy.
Entergy Louisiana and Entergy New Orleans have initiated periodic power outages as directed by MISO to prevent more severe grid failures, affecting over 1.3 million customers, with efforts to restore normalcy as soon as possible.
The U.S. Department of Energy (DOE) has finalized energy efficiency standards for distribution transformers, aiming to bolster the nation's power grid, support domestic manufacturing jobs, and deliver billions in energy savings. The updated standards, with a longer compliance timeline of five years, are projected to save American utilities and businesses $824 million annually in electricity costs and increase demand for core materials like grain-oriented electrical steel (GOES). The move is expected to protect and create jobs in Pennsylvania and Ohio, reduce carbon emissions, and enhance the efficiency of the electrical grid, while aligning with President Biden's industrial policy goals.