The Cost of No New Clean Power in PJM

Electricity demand across the PJM Interconnection region is growing at an unprecedented pace, driven by rapid expansion of data centers, advanced manufacturing, electrification, and broader economic growth. A new analysis by ACP finds that without timely deployment of significant new clean energy resources, Mid-Atlantic and Midwest states face serious reliability risks and dramatically higher electricity costs over the next decade. 

There is a growing mismatch between demand growth and new conventional generation that presents an immediate challenge to grid reliability and affordability across the PJM region. To evaluate system-wide impacts, ACP modeled PJM under two scenarios: a base case, where all generation resources are available, and a no clean power case, where no new wind, solar, or storage projects are added beyond those already under construction or required by law. 

Key Data Points:  

• Without new clean energy development, ACP estimates that ratepayers across nine PJM states would pay an additional $360 billion over the next ten years, driven primarily by higher wholesale electricity prices.  
• The average residential household would see $3,000 to $8,500 in additional electricity costs over the next decade.   
• In the “no new clean power” case, PJM becomes increasingly reliant on aging, higher-cost fossil fuel generation and imported electricity. Net power imports rise nearly 300% by 2035, increasing exposure to fuel price volatility and operating hours with extremely high electricity prices.