PJM Interconnection says it’s power grid is under increasing strain as electricity demand rises-driven largely by rapid growth in large-load data centers and wider electrification-while new generation is slowed by environmental and permitting delays, supply-chain issues, and the retirement of dispatchable plants. In a white paper,PJM warns the region is shifting from managing excess supply to managing potential scarcity,with long timelines for building new resources.<\/p>\n

To address reliability concerns, PJM lays out three approaches: (1) stabilizing markets through long-term forward commitments, including hedging and\/or a tiered multiyear capacity market; (2) implementing \u201cdifferential reliability,\u201d potentially curtailing flexible or large new loads first while protecting existing residential customers; and (3) moving toward more supply-and-demand pricing over time while keeping long-term contracting options so consumers are protected from energy-price volatility<\/a>.<\/p>\n

The article also notes that regulatory actions by the Trump management aimed to speed up permitting, but major changes would still require Congress, and proposed legislation to modify the National Environmental Policy Act has stalled in the Senate. <\/p>\n