PJM Interconnection, the power grid supplier for Pennsylvania and all or portions of twelve other states, says it has decided on a strategy for handling the massive power demands associated with data centers and other large-load electricity users.
In a published “Board Decisional Letter”, PJM outlines a six-step plan that acknowledges problems that result from large-load users, admitting the supply and demand ratio for power is not in balance. Older power plants are being retired and new plants are not being built fast enough to replace them, exacerbated by a worldwide shortage of gas turbines that is slowing down the construction process.
One element of the strategy that stands out is that PJM “expects the data center community and other large loads…to play a constructive role in addressing the reliability and affordability challenges.” Another is that in emergency situations where energy demand exceeds supply, PJM “finds it reasonable for certain large loads, including data centers, to move to their backup generators, or curtail their demand…to prevent a larger scale outage for residential and other consumers.”
PJM also acknowledges that state governments ultimately control the regulation of electricity generation within their borders.
THE PJM “DECISIONAL LETTER”:
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