American Clean Power Analysis Highlights Urgent Need For Wind, Solar, And Storage To Protect Consumers From Higher Electricity Prices And Reliability Risks

Electricity demand across the PJM Interconnection region is rising at an unprecedented rate, driven by rapid growth in data centers, advanced manufacturing, electrification, and overall economic expansion. A new analysis by the American Clean Power Association (ACP) warns that without the timely deployment of significant new clean energy resources, states in the Mid-Atlantic and Midwest could face serious reliability challenges and sharply higher electricity costs over the next decade.

The report highlights a growing gap between demand growth and new conventional generation, creating immediate risks to both grid reliability and affordability across the PJM region. The financial implications are substantial. ACP estimates that, without additional clean energy development, ratepayers in nine PJM states could pay an extra $360 billion over the next ten years, primarily due to higher wholesale electricity prices. For the average residential household, this could translate to $3,000 to $8,500 in additional electricity costs over the same period.

Energy affordability in the Mid-Atlantic has become a prominent political issue. Last week, both the Trump Administration and a bipartisan group of state governors urged PJM to take action to address these rising costs. John Hensley, Senior Vice President of Markets and Policy Analysis at ACP, emphasized the importance of deploying resources that can be built quickly, operate reliably, and protect customers from unexpected electricity price spikes. He noted that clean energy sources and energy storage are particularly well-suited to meet near-term demand growth while reducing costs and enhancing reliability for consumers.

To assess the system-wide impacts, ACP modeled PJM under two scenarios. The first, a base case, assumed that all existing and planned generation resources would be available. The second, a “no new clean power” scenario, assumed no additional wind, solar, or storage projects beyond those already under construction or legally required. The analysis revealed stark differences between the two scenarios.

Under the “no new clean power” scenario, PJM would become increasingly dependent on aging, higher-cost fossil fuel plants and imported electricity. Net power imports are projected to increase nearly 300 percent by 2035, exposing the region to fuel price volatility and periods of extremely high electricity prices. The study also identified elevated reliability risks during peak demand periods, when the system is most vulnerable.

Clean energy resources, including wind and solar, can be deployed more quickly and operate at lower long-term costs. New electricity generation from these sources can typically be brought online within one to two years, compared with five to seven years for new natural gas power plants, which are currently constrained by limited turbine availability. Deploying clean energy can help meet growing electricity demand, ensure resource adequacy, and stabilize wholesale prices during a period of rapid load growth.

Hensley concluded that delaying clean energy deployment comes with significant costs. Timely investment in wind, solar, and energy storage is critical to maintaining reliability, reducing reliance on imported power, and protecting families and businesses from sharply higher electricity bills as demand continues to increase.