Largest US electric grid ramps up warnings amid hot temperatures
The largest U.S. grid operator, PJM, issued warnings due to soaring temperatures and transmission line congestion, particularly around northern Virginia's data centers. This led to increased wholesale electricity prices and concerns about grid reliability. An advocate highlighted that data center load growth is outpacing new electricity supply, contributing to these issues and keeping prices high.
PJM, the U.S. grid operator serving 67 million people across the Mid-Atlantic, South, and Midwest, issued multiple warnings on Wednesday. These warnings cited low voltage, heavy energy loads on transmission lines, and significant congestion, especially in northern Virginia, a global hub for data centers.
The warnings coincided with a surge in temperatures and a resulting spike in electricity demand, pushing wholesale spot prices to over $300 per megawatt hour. PJM's recent annual capacity auction revealed that securing enough electricity for peak demand would cost over $16 billion, falling short of its reserve margin target by about 7 GW.
Claire Lang-Ree, a climate and energy advocate at the National Resources Defense Council, stated that the auction results confirm an "unacceptable trend" where data center load growth is exceeding new electricity supply, leading to decreased reliability and sustained high prices. PJM had previously set a record demand of 168.2 GW on July 2.