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The largest US power grid is moving ahead with a plan to meet rising demand

PJM Interconnection is the largest U.S. Grid Operator. They are moving forward with plans for backstop procurement of power to 'help ensure adequate -electricity supply if demand from data centers surges.

The grid operator that serves 13 states, including the District of Columbia and will file two proposals to federal regulators. The first would be to establish a "reliability-backstop procurement" in order to deal with potential power supply shortages.

PJM stated that the second tool would be an operational tool designed to?help maintain system reliability in periods of?supply shortfalls? while managing rapid load growth.

PJM is'seeking ways to bring more generation online in order to meet the rapidly increasing electricity demand, especially from data centers. It anticipates that demand for electricity from large new customers, such as data centers, will rise by about 70 gigawatts in 2038.

In its latest annual capacity auction, held 'this month', power prices were near records highs at?about $325 per megawatt day. PJM failed to meet its reliability requirements for a second consecutive auction.

PJM announced on Monday that it would hold the 'one-time backstop purchase' from September 30 through October 21. Results are expected to be available in early December. Reporting by Kavya BALARAMAN and Noel John from Bengaluru. Mark Potter edited the article.

(source: Reuters)