In a recent report from The Wall Street Journal, PJM Interconnection, one of the largest grid operators in the United States, warned of potential energy imbalances and blackouts caused by the accelerated retirement of fossil-fuel power plants and the slower development of renewable energy sources. The report predicts that 40,000 MW of power generation, representing around 21% of PJM’s current generation capacity, are at risk of retiring by 2030 due to policy-driven factors such as EPA regulations and ESG commitments by utility companies.
While many states have established ambitious renewable energy goals and received significant subsidies for wind, solar, and battery storage projects, the report notes that the historical rate of completion for renewable projects has been only about 5%. The report predicts that only about 21,000 MW of renewable capacity will be added to the grid by 2030, about half as much as the expected fossil-fuel retirements.
Furthermore, the growth of data centers and the government’s push for the electrification of vehicles, heating, and other sectors will increase demand for electric power, exacerbating the energy imbalances.
In response to these challenges, 98six’s portfolio could be a great solution for these grid-related issues. Many of the sites owned by 98six° already have existing power purchase agreements (PPAs) and interconnections that bypass the logjam queuing process. These properties also have existing power infrastructure in-place — including existing substations and fiber connectivity — that can be quickly reused. This means that we can develop new renewable energy facilities in a shorter amount of time and with less investment in new infrastructure.
98six° is excited to quickly and smartly develop sustainable energy products to combat this ever-growing blackout risk across the US electric grid!