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Jay McKinsey

challenges to new PJM gas plants

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  • New natural gas generation projects in the PJM Interconnection face a growing list of headwinds, and this has resulted in delays at almost a dozen combined cycle projects, according to a joint study by the Applied Economics Clinic (AEC) and the Institute for Energy Economics and Financial Analysis (IEEFA).
  • And those factors are being exacerbated by uncertainty in PJM's capacity market due to the Federal Energy Regulatory Commission's Minimum Offer Price Rule (MOPR), according to the report. In December, the commission expanded the rule, effectively raising the floor prices for state-subsidized resources. The market is now in a state of "upheaval," according to AEC and IEEFA. @Coffeeguyzz

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