By 2030, the PJM Interconnection, the largest US electrical grid in the US serving 67 million people in 13 northeast states, is likely to face a “loss of load expectation,” or LOLE – a key reliability metric used by power system planners to measure the expected number of hours or days per year that a power grid’s electricity generation will fail to meet customer demand – between six and 100 times worse than the grid operator’s planning criterion, mainly due to the addition of large-load data centers, according to a study commissioned by the Pennsylvania Public Utility Commission.
The PUC and the firms that produced the report – Synapse Energy Economics, Mondre Energy and Aspen Technologies – characterized it as an independent analysis aimed at developing load projections and evaluating resource adequacy under a set of likely possible futures, according to UtillityDive.
In models covering 2027 through 2030, both a reference scenario and a high-load, low-supply scenario show PJM’s planning criteria for resource adequacy not being met. Only under a scenario with no new data centers is the region able to meet PJM’s target LOLE of 0.1, the report said.
PJM’s standard is designed to limit potential electricity shortages “to approximately one event every 10 years,” said a PUC release about the report.
In the study’s reference scenario, which relies on PJM’s 2026 load forecast, the modeled 2030 LOLE is 0.59, “or nearly six times worse than the PJM planning criterion,” it said.
In a “worst-case future” of higher-than-expected load additions and constrained resource deployment, the modeled LOLE is 13.20 — “over 100 times worse than PJM’s planning criterion,” indicating an expectation of “more than 13 days with loss of load events per year.”
“As in the Reference scenario, these reliability issues are largely due to surging data center additions,” the study said.
“This analysis sends a clear warning: electricity demand and supply are moving out of balance, and the status quo is not sustainable,” PUC Chairman Steve DeFrank said in a statement. “We need urgent action at PJM and a broader Pennsylvania energy strategy that makes sure our supply of electricity keeps pace with demand.”
PJM, in a statement to CBS affiliate WJAC, acknowledged that new data center loads are growing faster than supply.
“PJM has taken a number of actions to both increase electricity supply and manage new demand in line with the Ratepayer Protection Pledge taken by data center developers to shield residential customers and other ratepayers from bearing reliability risks or cost increases associated with data center development,” said Jeff Shields, PJM’s senior manager of external communications.
The reference scenario anticipates Pennsylvania remaining a net energy exporter, but sees its exports “decrease from about 91 TWh in 2025 to about 69 TWh by 2035 and 38 TWh by 2040,” the report said.
In the high-load, low-supply scenario, Pennsylvania becomes a net importer of 5 TWh by 2040.
Hellbound and Down 