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PJM expects ample power generation capacity to meet 149 GW summer peak - S&P Global

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Highlights

Highest summer peak of 166 GW in 2006

Above-average US summer weather expected

PJM Interconnection power system operators have forecast peak electricity demand this summer of roughly 149 GW, with over 185 GW of installed generating capacity available, which should ensure adequate supply for what is expected to be a relatively hot summer, the grid operator said May 20.

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"Planning and preparation are key," Manu Asthana, PJM president and CEO, said in a statement.

"PJM and our members continually coordinate and prepare for peak load operations throughout the year," Asthana said.

PJM's all-time highest power use was recorded in the summer of 2006 at 165,563 MW.

PJM power demand peaked in 2020 at approximately 144 GW on July 20, when total energy use during the summer was suppressed due to impacts from the coronavirus pandemic, PJM said.

"PJM is expecting higher demand this summer, as these impacts have decreased and the forecast calls for warmer-than-normal temperatures," the grid operator said.

Top 10 PJM Summer Peaks

Rank

Date

Load MW

Coincident Load MW

DR MW

Final MW

1

8/2/2006

144,644

20,919

-

165,563

2

7/21/2011

158,043

5,702

108

163,853

3

7/22/2011

151,366

7,588

2,212

161,166

4

7/18/2013

157,509

116

2,075

159,700

5

7/17/2012

154,339

2,222

2,294

158,855

6

7/20/2011

150,060

7,734

77

157,871

7

7/19/2013

156,077

110

520

156,707

8

7/18/2012

152,758

2,030

406

155,194

9

7/17/2013

154,044

119

581

154,744

10

7/6/2012

151,966

2,225

361

154,553

Source: PJM

Warmer US weather

The Federal Energy Regulatory Commission also released their Summer Energy Market and Reliability Assessment on May 20, which included a forecast for higher summer temperatures nationwide.

Like the past five summers, the National Oceanic and Atmospheric Administration forecasts higher than average temperatures throughout the US this summer, which could drive up demand for electricity, the report said.

The upper Midwest and East Coast have a 40%-50% probability of above average temperatures for June, July, and August and the East Coast will have a 50% probability of above average temperatures for July, August, and September, FERC said.

Regarding market fundamentals for US electricity markets, the North American Electric Reliability Corporation forecasts net demand for power to increase by approximately 0.6% for summer 2021 compared with summer 2020.

Most electric capacity additions are forecast from natural gas, solar, wind and battery resources during the summer, while nearly 1.7 GW of coal-fired generation capacity, largely in PJM, Midcontinent Independent System Operator, and ISO New England are scheduled to retire this summer, according to the FERC report.

And about 2.3 GW of nuclear power capacity in PJM is scheduled to retire this summer, the report said. Specifically, Exelon's 2.3 GW Byron nuclear plant located in northern Illinois plans to shut down in September 2021, making it available to serve load during the historically warmer summer months, FERC said.

Natural gas-fired power generation is expected to continue to play an important role in the summer of 2021 at an average market share of 48% across organized wholesale power markets, making it the largest source of electric generation capacity, according to the commission's assessment.

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