Julian Kaufmann

Capacity market prices for energy in PJM surged, signaling a crucial demand for additional generation. PJM Interconnection's footprint is set to allocate $14.7 billion for capacity in the 2025/26 delivery year, a substantial rise from $2.2 billion in the previous auction. Stay informed about the energy sector's evolving landscape: [Link to the article] #EnergyMarket #CapacityAuction #PJMInterconnection

6

📈 Corporate PPA activity in the ERCOT market has reached 1.8 GW, YTD 2024. Data from the Enerdatics Energy Transition PPA database indicates that ERCOT has seen ~1.8 GW in corporate power purchase agreements (PPAs) since the start of 2024, constituting over 60% of the U.S. total. 💡 Tech giant Microsoft leads the way, having secured ~800 MW across three deals. Meanwhile, new entrants such as UnitedHealth Group, Sonoco, and AdventHealth are also stepping up their sustainability efforts. 🏆 Key Suppliers Making Waves: > Regional Leaders: Primergy, Leeward Renewable, Scout Clean Energy > International Players: Orsted, ENGIE 🤝 Positive PPA negotiations in ERCOT are driven by the market's lower land and interconnection costs, which help mitigate higher interest rates and supply chain issues. 🌟 Top Deals to Note: > Microsoft and Primergy Solar: 408 MW from Ash Creek solar project > Hyundai and Matrix Renewables: 147 MW (Hyundai’s first U.S. PPA) > RTX and ENGIE: ~38 MW from Priddy wind project #CorporatePPA #ERCOT #RenewableEnergy #Sustainability #Microsoft #Hyundai #RTX #ENGIE #Orsted #Primergy #LeewardRenewable #ScoutCleanEnergy #UnitedHealthGroup #Sonoco #AdventHealth

26

Without major reforms or market innovations, most projects entering PJM’s interconnection queue today are unlikely to come online before 2030. Read more here! #PJM #energyindustry #energynews https://lnkd.in/ek_TWaF2

7

This article discussion flies in the face of the market PJM has created. A market that only supports short term assets like wind and solar backed up by gas or batteries. In short it confirms the market flaws that have been claimed by utilities over many years, and should encourage support for creating market signals to create long lived assets like baseload generation plants.

21

EQT Group’s new Transition Infrastructure strategy acquires distributed energy company Scale Microgrids Ryan Goodman Jan Vesely Warburg Pincus LLC #infrastructure #energytransition #cleanenergy #renewableenergy #privateequity

3

Constellation Energy's acquisition of Calpine represents a transformative development in the U.S. energy sector, with significant implications for market dynamics and grid interconnection. The merger's success will depend on effectively integrating diverse energy assets, strategic infrastructure investments, and careful navigation of regulatory landscapes. #EnergyTransition #GridModernization #MarketTrends Via Utility Dive https://lnkd.in/ghzgJnCB

13

1 Comment

Interesting read on near term electricity reliability planning - growth of intermittent capacity; asset shifts; growing cyber-threats; sector-coupling gas & grid; inter-regional capacity markets and demand growth. A lot to digest. In my view, district energy systems fit perfectly in the mix to support cities, communities and campuses as the energy transition unfolds. https://lnkd.in/eFQr9uGs

6

Constellation is close to finalizing a $30bn deal to acquire power producer Calpine, a transaction that would significantly bolster its generation capacity amid growing US power demand. The deal, expected to be announced by January 13, is likely to involve a payment structure consisting mostly of stock, with a smaller cash component. Historically, Constellation Energy has worked with Sidley Austin LLP and Bank of America, according to MergerLinks data. #MergersAcquisitionsDivestitures #Energy #PowerProducer

17

Does PJM give a signal to build anything other than short term sources - intermittent wind or solar backed up by batteries or natural gas? The capacity market would need to be 40 yrs or more to cover long lived assets like nuclear (a 40 to 80yr asset) or hydro (similar long lived asset) if it isn’t already built. This same market forced the shutdown of TMI one of the best running nuclear plants in the world.

7

Natural gas emits about half the CO2 of coal, making it a cleaner option for reliable, baseload power. In Virginia, natural gas accounts for over 50% of our electric capacity, and will continue to play a critical role in our all-of-the-above strategy for Virginia's energy future. https://ow.ly/QCVx50UpZ5w

4

The U.S. Department of Energy (DOE) continues its investment in improving the nations interconnection process with a focus on advancing AI technology in the space. GridUnity looks forward to being a part of this important initiative.

6

Exciting developments in Pennsylvania's energy sector as Senator Gene Yaw proposes a new loan fund to boost power plant construction! Modeled after Texas' initiative, this could be a game-changer for the PJM Interconnection grid, ensuring stability as demand grows. 📈 Explore how this could transform energy management in the region in this recent article from Utility Dive: https://loom.ly/FiIuQ3A

2

1 Comment

Kudos to Grid Strategies LLC for pulling this together. This is one of the best "state of play" reports on energy demand growth around. It's well worth the read, but here are some key takeaways. Five-Year Load Growth Forecast Explodes: Electricity demand is projected to increase by 15.8% through 2029, with a 5-year growth forecast jumping from 23 GW to 128 GW. Data Centers as Key Drivers: Data centers alone could contribute between 65 GW and 90 GW of new demand by 2029, with AI-centric facilities making up 70% of this growth by 2030 Infrastructure Lagging Behind: Despite rising demand, only 55 miles of high-capacity transmission were built in 2023. Planned investments are increasing but remain insufficient to meet the forecasted load Regional Hotspots for Load Growth: Texas, Northern Virginia, Georgia, and the Pacific Northwest are leading regions for demand, driven by data center development, hydrogen plants, and industrial manufacturing. Challenges with Forecasting and Planning: Utilities face difficulties in accurately predicting load growth due to factors like data center energy use, hydrogen production, and electrification of transportation. New Financial Models and Tariffs: Utilities are adopting new tariffs requiring financial commitments from large loads, like data centers, to share infrastructure costs Opportunities in Energy Efficiency and Resilience: Improvements in energy efficiency, though slow, could reduce overall strain. Distributed energy resources (DERs) and Virtual Power Plants (VPPs) are potential solutions for enhancing resilience and grid flexibility Risks to U.S. Global Leadership: Delays in grid expansion could hinder economic and technological leadership in strategic industries like AI and advanced manufacturing.  #cloudcomputing  #cryptomining  #energyinfrastructure  #climatechange  #gridoptimization  #smartgrid  #batterystorage  #smartbuildings  #iot  #ev  #energytransition  #energynews https://lnkd.in/gTMVUYgh

5

Great article from Sara Baldwin. Power Demand Reduction (DR) on the consumer side is a critical component to balancing our growing grid power needs. But we must go beyond traditional DR that curtails power and give the customers a means to reduce their own peak power behind-the-meter. Affordable, high-power energy storage is the key.

2

PJM has identified the need for changes to its operating reserve markets because: > PJM’s existing reserve markets were designed primarily to manage risk associated with large unit loss > PJM’s existing reserve markets do not align with operational needs and reliability actions today, and this is discrepancy will grow moving forward > Flexibility needs will be increasingly driven by forecast uncertainty, and reserve markets will need to be more dynamic and probabilistic  > Enhancements are needed to PJM’s reserve markets to ensure reliability through the energy transition Kinda ryhmes with our experience in Alberta, so there may be some good learning here for us as we progress through our energy and reserve market redesigns... PJM Reserve Market Enhancements: https://lnkd.in/ggm3SbER

22

#ICYMI - PJM and stakeholders will begin developing scenarios for long-term transmission planning as the first priority in complying with Order 1920, approved May 13 by the Federal Energy Regulatory Commission. https://lnkd.in/gxcdSU99

58

Constellation acquires Calpine, making it the largest merchant power producer in the U.S. during a time of unprecedented growth in electricity demand. #PWI, #ESP, and #BREA provide multiple opportunities to invest in this trend. https://lnkd.in/gQWY8u73

8

PJM has published an addendum to its paper, Energy Transition in PJM: Flexibility for the Future, to provide supporting information and context for the assumptions used in the study’s analysis. The addendum was developed as a companion to the fourth phase of PJM’s ongoing effort to assess the impact of the energy transition, including the escalating integration of renewable resources on the grid. It provides details on the scenario development used in the study, including generation expansion drivers and siting, generation deactivation drivers, load forecast, transmission topology, and external interchange. Read more at PJM Inside Lines. https://lnkd.in/ecYBbzxx

54

1 Comment