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Forecast demand on the largest US grid is expected to be close to winter records

The PJM Interconnection region, which covers one fifth of Americans, is experiencing an unusually cold and prolonged winter.

PJM is responsible for the electricity flow in 13 Mid-Atlantic and Midwest states. Prices on the market impact the bills of approximately 67 million consumers. Grid operator predicted a demand of 141 gigawatts for Friday. The continued Arctic weather is likely to keep electricity usage high until February 2. PJM has managed to survive a'snowstorm' and 10 days of freezing temperatures without requiring any rolling blackouts.

The grid operator stated that it continues to prepare for cold operating conditions with its transmission and generation owners.

Generators and power transporters scrambled to keep the PJM System running as icy, windy conditions increased demand and limited the supply of natural 'gas fuel sources. On Friday, the expected generation outages were 15 gigawatts or 11% of all committed capacity. PJM data shows that generation outages topped 22.2 GW on Monday. According to its forecast, outages were expected for the weekend to range between 11 GW and 14 GW.

PJM forecasted earlier this week that its all-time record for winter demand would be smashed by Friday. They predicted 148 GW in electricity consumption. PJM set its record for the winter season in January 2025, with 143.7 GW. PJM lowered its forecasts because temperatures in certain parts of the territory weren't as cold as expected. The U.S. Department of Energy also encouraged data centers to use backup generators in order to 'ease the strain on PJM resources.

PJM has had its performance closely monitored, in part because it is a large concentration of data centres, whose energy consumption increases faster than the grid, contributing to higher electricity prices.

Spot wholesale energy?prices were around $173 per MWh in PJM on Friday. This was far below the spikes earlier in this week, which reached $3,000 per MWh.

PJM, the electric grids in New York and New England and PJM themselves have all had to deal with congested high voltage lines across their respective territories. This week, temperatures hovering around 0 degrees Fahrenheit have led to power line overloads due to an increase in electricity demand. The cold weather has also reduced the capacity of power stations in PJM territory. (Reporting by Tim McLaughlin, Laila Kearney and David Gregorio; Editing Emelia Sithole Matarise)

(source: Reuters)