Energy and transition economics
2026-04-26
9 minute read
5 sources
PJM capacity market in 2026: what the next auction is telling us
After the 2025-26 delivery year auction shocked the market with a more than ninefold price jump, the upcoming PJM capacity auctions will determine whether the largest U.S. power market can reconcile data center demand with a thinning generation stack.
PJM Interconnection runs the Reliability Pricing Model, a forward capacity construct that procures resource adequacy three years ahead for 65 million customers across 13 states and the District of Columbia. The July 2024 base residual auction for delivery year 2025-26 cleared at $269.92 per megawatt-day, roughly nine times the prior year,...