--- title: "PJM Capacity Auction Results: Prices Rise 830% for Delivery Year '25/'26" description: "PJM Capacity Auction Results: Prices Rise for Delivery Year 2025/2026" image: https://stanwichenergy.com/hubfs/image-png-Jul-30-2024-10-18-47-3267-PM.png --- [![logo_full-color](https://stanwichenergy.com/hubfs/Website%20Assets%20-%202023/logos_NEW_updated_01-31/logo_full-color.svg "logo_full-color")](http://StanwichEnergy.com) [![logo_white](https://stanwichenergy.com/hubfs/Website%20Assets%20-%202023/logos_NEW_updated_01-31/logo_white.svg "logo_white")](http://StanwichEnergy.com) - [Services](https://stanwichenergy.com/services) - [Energy Procurement](https://stanwichenergy.com/services/energy-procurement) - [Sustainability](https://stanwichenergy.com/services/sustainability) - [Risk Management](https://stanwichenergy.com/services/risk-management) - [Demand Response](https://stanwichenergy.com/services/demand-response) - [Reporting](https://stanwichenergy.com/services/reporting) - [Energy Efficiency](https://stanwichenergy.com/services/energy-efficiency) - [About](https://stanwichenergy.com/about) - [Insights](https://stanwichenergy.com/insights) - [Energy Procurement](https://stanwichenergy.com/insights?topic=energy-procurement) - [Sustainability](https://stanwichenergy.com/insights?topic=sustainability) - [Markets](https://stanwichenergy.com/insights?topic=markets) [Contact Us](https://stanwichenergy.com/contact-us) [Log In](https://stanwichapp.com/home) [Contact Us](https://stanwichenergy.com/contact-us) [Log In](https://stanwichapp.com/home) ![](https://stanwichenergy.com/hubfs/Screenshot%202023-11-01%20130151-2.png) # PJM Capacity Auction Results: Prices Rise 830% for Delivery Year '25/'26 Sign Up for Blog Updates ## Explore Other Resources [All Resources](https://stanwichenergy.com/insights) [Energy Procurement](https://stanwichenergy.com/insights?topic=energy-procurement) [Sustainability](https://stanwichenergy.com/insights?topic=sustainability) [Markets](https://stanwichenergy.com/insights?topic=markets) ![Close](https://stanwichenergy.com/hubfs/raw_assets/public/images/stanwich-plus-button.svg) ## Subscribe Today! ## PJM Capacity Auction Results: Prices Rise 830% for Delivery Year '25/'26 July 30, 2024 | [Bob Johnson](https://stanwichenergy.com/insights/author/bob-johnson) PJM's recent capacity auction has set the stage for significantly higher costs in the 2025/2026 Delivery Year. The auction secured resources to meet PJM's reliability requirements, but the prices were notably higher due to several factors, driving up capacity costs for end users. ![](https://stanwichenergy.com/hs-fs/hubfs/image-png-Jul-30-2024-10-18-47-3267-PM.png?width=1895&height=314&name=image-png-Jul-30-2024-10-18-47-3267-PM.png) **Key Factors Driving Higher Prices** 1. **Decreased Supply**: A substantial number of generator retirements reduced the electricity supply entering the auction. 2. **Increased Demand**: The forecasted peak load for the 2025/2026 Delivery Year increased from 150,640 MW to 153,883 MW. 3. **Market Reforms**: FERC-approved market reforms, including improved reliability risk modeling for extreme weather, have tightened the supply-demand balance. **Auction Results** The auction cleared at $269.92/MW-day for much of the PJM footprint, a stark increase from $28.92/MW-day in the previous year's auction. This hike reflects the market's need to incentivize new investment in generation resources. **Impact on End Users** Higher capacity prices translate to increased electricity costs for end users across PJM's 13 states and the District of Columbia. End users should anticipate rising fixed all-in energy costs as suppliers pass on these increased capacity costs. **Constrained Areas** Prices hit the zonal cap in the BGE zone in Maryland ($466.35/MW-day) and the Dominion zone in Virginia and North Carolina ($444.26/MW-day) due to insufficient local resources and transmission constraints. These areas will benefit from additional generation resources or improved transmission infrastructure to import capacity. **Future Outlook** PJM's capacity auction highlights a tightening supply-demand balance and underscores the need for new investments in generation resources. End users can expect continued upward pressure on electricity costs as PJM implements further market reforms and seeks to address resource adequacy concerns. For additional information please [contact us](https://stanwichenergy.com/contact-us) to schedule a quick call.     Insights ## Related Articles [News](https://stanwichenergy.com/insights?topic=news), [Connecticut](https://stanwichenergy.com/insights?topic=connecticut), [Reliability](https://stanwichenergy.com/insights?topic=reliability), [Transmission and Delivery](https://stanwichenergy.com/insights?topic=transmission-and-delivery), [FMCC](https://stanwichenergy.com/insights?topic=fmcc) #### [Rate Increase for Eversource Connecticut Customers: What You Need to Know](https://stanwichenergy.com/insights/rate-increase-for-eversource-connecticut-customers-what-you-need-to-know) Starting July 1, 2024, Eversource Connecticut customers will see a significant adjustment to... [Read More](https://stanwichenergy.com/insights/rate-increase-for-eversource-connecticut-customers-what-you-need-to-know) [PJM](https://stanwichenergy.com/insights?topic=pjm), [Markets](https://stanwichenergy.com/insights?topic=markets), [Capacity](https://stanwichenergy.com/insights?topic=capacity), [Auctions](https://stanwichenergy.com/insights?topic=auctions) #### [PJM’s 2027/2028 Capacity Auction: Higher Load Forecasts Push Prices to the Cap Again](https://stanwichenergy.com/insights/pjms-2027/2028-capacity-auction-higher-load-forecasts-push-prices-to-the-cap-again) PJM’s capacity market is how the grid secures future reliability. It is designed to ensure there... [Read More](https://stanwichenergy.com/insights/pjms-2027/2028-capacity-auction-higher-load-forecasts-push-prices-to-the-cap-again) [PJM](https://stanwichenergy.com/insights?topic=pjm), [Capacity](https://stanwichenergy.com/insights?topic=capacity), [Auctions](https://stanwichenergy.com/insights?topic=auctions), [Energy Demand](https://stanwichenergy.com/insights?topic=energy-demand), [Peak Demand](https://stanwichenergy.com/insights?topic=peak-demand), [Energy Policy](https://stanwichenergy.com/insights?topic=energy-policy), [Load Growth](https://stanwichenergy.com/insights?topic=load-growth), [Large Loads](https://stanwichenergy.com/insights?topic=large-loads) #### [PJM’s 2026 Large-Load Plan Meets a Federal Backstop Push](https://stanwichenergy.com/insights/pjms-2026-large-load-plan-meets-a-federal-backstop-push) PJM is facing a familiar problem at an unfamiliar scale. It needs to connect large, fast-growing... [Read More](https://stanwichenergy.com/insights/pjms-2026-large-load-plan-meets-a-federal-backstop-push) [![logo_full-color](https://stanwichenergy.com/hubfs/Website%20Assets%20-%202023/logos_NEW_updated_01-31/logo_full-color.svg "logo_full-color")](http://StanwichEnergy.com) Your Strategic Power Partner [![stanwich-icon-linkedin](https://23787763.fs1.hubspotusercontent-na1.net/hubfs/23787763/stanwich-icon-linkedin.svg)](https://www.linkedin.com/company/stanwich-energy/) [Contact Us](https://stanwichenergy.com/contact-us) [![stanwich-icon-linkedin](https://23787763.fs1.hubspotusercontent-na1.net/hubfs/23787763/stanwich-icon-linkedin.svg)](https://www.linkedin.com/company/stanwich-energy/) [877-214-9066](tel:+8772149066) [info@stanwichenergy.com](mailto:info@stanwichenergy.com) 2 Greenwich Office Park Greenwich, CT 06831 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Bob Johnson", "url" : "https://stanwichenergy.com/insights/author/bob-johnson" }, "dateModified" : "2024-08-12T20:03:02.690Z", "datePublished" : "2024-07-30T22:29:33.000Z", "headline" : "PJM Capacity Auction Results: Prices Rise 830% for Delivery Year '25/'26", "image" : [ "https://stanwichenergy.com/hubfs/image-png-Jul-30-2024-10-18-47-3267-PM.png" ], "mainEntityOfPage" : { "@id" : "https://stanwichenergy.com/insights/pjm-capacity-auction-results-prices-rise-for-delivery-year-2025/2026", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://stanwichenergy.com/hubfs/Website%20Assets%20-%202023/logos_NEW_updated_01-31/logo_full-color.svg" }, "name" : "Stanwich Energy Advisors" } } ```