PJM Interconnection has asked the Federal Energy Regulatory Commission to approve a new conditional reliability framework for large electricity users, including data centers, that connect to its grid. The filing, submitted August 13, would let major new facilities begin drawing power before enough new generating capacity exists to fully support their demand. In exchange, any portion of that demand not backed by qualifying new capacity could face earlier curtailment during grid stress, ahead of other pre-emergency demand response measures.
PJM defines a New Large Load as a facility using 50 megawatts or more at a single site that begins service after June 1, 2027. Utilities serving those loads would need to secure qualifying capacity equal to the load's peak demand, or the load could reduce its exposure through a program PJM calls Bring Your Own New Capacity, which allows new generation, storage, or other qualifying resources to offset the requirement. PJM also plans to create a Large Load Registry tracking location, peak demand, and backup generation for these facilities.
The proposal did not emerge from stakeholder consensus, and PJM's own Independent Market Monitor has raised concerns about how registry data will be verified. PJM has cited an expectation of roughly 70 gigawatts of new large load demand by 2038, alongside about 15 gigawatts of generation retirements since 2022. Comments on the proposal were due September 3, and PJM has requested an October 12 effective date.
Source: Data Center Knowledge - https://www.datacenterknowledge.com/energy-power-supply/pjm-s-new-deal-for-data-centers-bring-power-or-face-cuts