Key Points
- Frigid temperatures and high demand are straining power grids on the U.S. East Coast.
- The PJM Interconnection has reported a surge in power plant outages.
- Wholesale electricity prices have spiked, with some areas seeing a ninefold increase.
- Grid operators are taking emergency measures to prevent blackouts.
A blast of frigid winter weather is putting a major strain on the power grids along the U.S. East Coast, leading to a surge in power plant outages and sending electricity prices soaring. The PJM Interconnection, the nation’s largest regional grid, reported nearly 21 gigawatts of generation outages on Sunday, representing about 16% of its total demand.
The cold snap has created a perfect storm of problems. Constricted natural gas supplies, a major fuel for power plants in the region, are struggling to keep up with high demand. At the same time, increased cloud cover has reduced the amount of solar power available.
The result has been a dramatic spike in wholesale electricity prices. In some parts of Virginia, which is home to the world’s largest cluster of energy-hungry data centers, prices topped $1,800 per megawatt-hour on Sunday, up from just $200 the day before.
The grid operators are taking emergency measures to keep the lights on. PJM has ordered some of its customers to curb their electricity use, and ISO New England, which serves the Boston area, has asked power plant operators to postpone any maintenance.
The situation is a stark reminder of the nation’s aging power infrastructure’s vulnerability. A combination of power plant retirements, a surge in data center demand, and transmission system bottlenecks has left the grid with less flexibility than it had just a few years ago.
The cold weather is expected to continue, and PJM is predicting an all-time winter demand record on Tuesday. With nearly 1 million customers already without power on Sunday, the next few days will be a major test of the U.S. power grid’s resilience.
