The PJM Grid in Peril: What Will Keep the Lights On?

August 26, 2024

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Pittsburgh Works Together Releases New Report:
"The PJM Grid in Peril: What Will Keep the Lights On?"

Report warns that government policies threaten stability of PJM electric grid

PITTSBURGH, PENNSYLVANIA, August 2024 - Pittsburgh Works Together (PWT), an economic development alliance of business and organized labor locals, has released a new report titled "The PJM Grid in Peril: What Will Keep the Lights On?" This timely and critical report examines the current state of the PJM electric grid system, highlighting the challenges it faces and the potential consequences if immediate action is not taken.

Jeff Nobers, Executive Director of PWT, emphasized the importance of this report in the broader energy discussion: "We believe this report is a vital contribution to the energy conversation in Pennsylvania and across the country. It uses facts and data to describe how things are, not how we wish they were. The findings are clear—our current path is unsustainable, and it's time to address the realities facing our electric grid."

The report likens the PJM electric grid to a favorite sweater—still functional but with a few loose threads. With careful work and attention, the grid can continue to provide the comfort and security needed. However, government policymakers in Washington and various states are pulling at these loose threads, threatening to unravel the entire network.

Key Findings of the Report Include:

• Fossil Fuels and Nuclear Power Dominate: Fossil fuels, along with nuclear power, currently provide nearly all the power (92%) in the PJM grid.
• Limited Renewable Energy Production: Most PJM states generate less than 5% of their electricity from wind and solar power.
• Reliance on Neighboring States: Many PJM states do not produce enough electricity to meet their own demand and must rely on states like Pennsylvania for their energy needs.
• Government Policies Increasing Risk: Despite the growing reliance on electricity, government policies are pushing to close fossil fuel plants, with some states requiring 50% or more of their power to come from renewable sources.
• Potential Supply Shortage by 2030: The combination of increasing demand for electricity, the closure of fossil fuel plants, and insufficient new reliable generation is "nearly certain" to lead to a supply shortage by 2030, if not sooner, according to PJM.
• Critical Role of Pennsylvania: Pennsylvania is the keystone that makes PJM work. However, Governor Shapiro’s electricity proposals could further destabilize the PJM grid, which supplies power to 65 million people and more than 20% of the U.S. economy.

The report underscores the urgency of addressing these issues to ensure the stability and reliability of the PJM electric grid system.

Pittsburgh Works Together is a business-organized labor-workforce-economic development alliance working to grow jobs and expand the industries that are the foundation of our economy, including energy, manufacturing, and construction, to provide opportunity for all residents. To learn more, please visit pghworks.com.

Media Contacts:

Ken Zapinski

412-352-4364; ken@pghworks.com