A dangerous heat wave is intensifying across the central and eastern United States, leading to significant strain on power grids in regions like New York and Chicago. PJM Interconnection, the nation's largest electrical grid serving 67 million people across 13 states and Washington D.C., anticipates record-breaking demand. The grid operator expects demand to hit a summer record of 166.3 gigawatts (GW) on Thursday evening, slightly exceeding its 2006 record of 165 GW. There's also an "unlikely but plausible" scenario where demand could reach up to 169 GW.
This surge in electricity consumption, driven primarily by air conditioning use, is exacerbated by rapid growth from data centers and electric vehicles, as well as the reduced efficiency of aging coal and gas plants in extreme heat. In response to the strain, the U.S. Department of Energy granted PJM permission to declare a power emergency, allowing power plants to temporarily exceed environmental regulations to operate at maximum capacity. PJM has also issued hot weather alerts and requested power plants to postpone maintenance to maximize available capacity.
Wholesale electricity prices on PJM briefly spiked from less than $40 per megawatt-hour to above $1,600 due to severe transmission congestion, highlighting the grid's stress. The emergency measures also include the potential for data centers to use backup diesel generators, an option considered a last resort to prevent blackouts. New York City officials are asking businesses to set thermostats to 78 degrees Fahrenheit to alleviate the stress on the power grid. Grid operators nationwide, including MISO and NYISO, are implementing coordinated operational measures and forecasting high demand, with NYISO projecting statewide demand to exceed 31.7 GW on Thursday.
