PJM board proposes backstop capacity auction, data center curtailment plans

Bhavesh patel
1 Min Read

FERC’s response to the plans will likely “influence utility capital investment, data center development timelines and the allocation of reliability risks and costs,” ClearView Energy Partners said.

 

A data center being built in northern Virginia. The PJM interconnection’s board on July 27, 2026, proposed holding a backstop capacity auction to help meet growing demand from data centers. Getty Images

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Dive Brief:

  • The PJM Interconnection will hold a one-time backstop capacity auction starting in September to address a 6.8-GW shortfall from its just-held capacity auction for the delivery year that starts in mid-2028, according to a proposal the grid operator’s board released Monday.
  • Also, new data centers and other large loads that don’t bring their own power supplies will be curtailed when grid demand levels near emergency conditions, according to a summary of a separate proposal.
  • PJM’s board expects the grid operator will file the proposals for review by the Federal Energy Regulatory Commission before the end of this month.
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