The US’ largest grid operator, PJM Interconnection, intends to file plans with the Federal Energy Regulatory Commission (FERC) to secure more power and manage surging data center demand on the grid.
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According to reporting from Reuters, the Regional Transmission Operator (RTO) filed two plans with FERC.
The first seeks to establish a "reliability backstop procurement" process aimed at matching supplies with data center power needs that have not been met with long-term contracting. The procurement process would commence on September 30 and continue through to October 21, with the results subsequently released in December.
According to the RTO, the plan is needed to close the widening gap between data center load and available power resources, with PJM projecting that demand from large loads could spike to 70GW across its coverage area by 2038. As part of its latest capacity auction held last month, power prices hit a price cap at $325 per megawatt-day, with PJM falling short by approximately 6.8GW of its reliability requirement to meet projected demand, creating significant risks of blackouts on the grid.
