PJM Interconnection will need 43 gigawatts of new energy storage by 2045, according to a Brattle Group analysis commissioned by the U.S. Energy Storage Coalition. The report cites an expected 19 percent increase in peak load by 2030, long lead times for new generation, and a significant backlog in PJM’s interconnection queue—all of which threaten grid reliability if we don’t rapidly deploy battery storage.
Separately, PJM’s July 2025 capacity auction cleared at a record $329.17 per MW-day, a 22 percent increase year over year—underscoring that supply is tightening and capacity costs are rising across the region.
For energy-intensive businesses and utilities in PJM’s service territory, energy storage (typically in the form of battery storage) represents the fastest, most cost-effective path to manage rising demand, maintain reliability, and hedge against capacity price volatility—all while supporting a more resilient and decarbonized grid.
The Scale of PJM’s Challenge
As electricity demand accelerates and fossil fuel generation retires, PJM faces an ever-widening reliability gap. The Brattle Group projects a roughly 19 percent increase in PJM’s peak load by 2030—driven by electrification, data center growth, and the industrialization boom—with energy storage playing a central role in maintaining system balance.
At the same time, project interconnection queues remain heavily backlogged, creating multi-year delays for new solar, wind, and gas capacity. This mismatch between growing demand and delayed supply threatens both system reliability and market stability.
Battery storage systems can bridge that gap almost immediately. It can be deployed faster than any other grid asset, providing peak-shaving, load-shifting, and demand-response capabilities that strengthen reliability now—not a decade from now.
Why Battery Storage Is the Immediate Solution for Businesses and Utilities
Battery storage is already a proven solution to strengthen grid resilience and reduce costs. It can:
- Lower capacity costs by reducing peak demand and capacity-tag obligations
- Provide dispatchable flexibility to meet fast-changing load conditions
- Enhance reliability for both on-site operations and the broader grid
- Enable renewable energy integration by storing excess solar generation
As we’ve said before at Convergent Energy and Power, “battery storage turns volatility into opportunity.” In PJM’s rapidly shifting market, battery storage provides a dependable, scalable solution that supports both business cost savings and utility reliability goals.
The Capacity Price Connection
PJM’s latest capacity auction underscored how sensitive the system is to supply constraints. Prices rose to their highest level on record, reflecting tightening supply and limited new generation. The July 2025 auction cleared at $329.17 per MW-day, up 22 percent from the prior year’s auction—according to Reuters and RTO Insider.
By managing load during PJM’s five highest-demand hours, battery storage helps businesses and utilities lower future capacity costs while reducing grid stress.
🏢 For businesses, battery storage means predictable energy costs, lower demand charges, and greater operational control.
🏭 For utilities, battery storage provides a flexible, non-wires alternative that can defer or avoid costly transmission and distribution upgrades—improving long-term resilience.
The Cost of Waiting to Develop Battery Storage
The Brattle analysis warns that, without accelerated deployment, PJM could fall short of its reliability targets by the early 2030s. Given current interconnection backlogs, waiting even a few years could mean missing the window for cost-effective participation in PJM programs.
Battery storage systems can typically be sited, permitted, and operational in under two years—well ahead of most new generation projects. Each year of delay risks higher capacity charges, reliability events, and lost savings potential.
PJM early adopters of battery storage will be best positioned to capture both economic and reliability benefits relative to their peers.
Recap: What a Path Forward with Battery Storage Looks Like
For energy-intensive businesses, battery storage offers:
✔️ Lower and more predictable energy and capacity costs
✔️ Reduced exposure to PJM’s capacity price spikes
✔️ Improved reliability during peak demand periods
✔️ Transmission peak shaving that reduces congestion charges and overall grid dependence
For utilities and cooperatives, battery storage provides:
✔️ Faster project deployment to strengthen local reliability and meet capacity needs
✔️ Improved grid performance
✔️ Greater renewable integration and progress toward decarbonization goals
Convergent Energy and Power: Your Battery Storage Partner
The technology is proven. The economics are clear. The need is now.
If you’re ready to evaluate battery storage for your business or utility, leading energy storage developer Convergent Energy and Power (Convergent) is here to help. Convergent has been in the energy storage industry since its beginnings, for nearly 15 years. Throughout that time, we’ve gained experience and expertise, working closely with customers across North America to take the hassle out of energy storage.
We’re proud to say that it has never been easier to benefit from battery storage—and in the case of PJM, the timing has never been better.
Schedule a free, no-obligation introductory call with our team today to explore how we can support your energy goals.
Citations
- The Brattle Group – The Role of Energy Storage in PJM’s Decarbonizing Grid https://www.brattle.com/insights-events/publications/the-role-of-energy-storage-in-pjms-decarbonizing-grid/
- Utility Dive – “PJM Interconnection Needs 43 GW of Energy Storage by 2045: Brattle Group” https://www.utilitydive.com/news/pjm-interconnection-needs-43-gw-of-energy-storage-by-2045-brattle-group/802748
- PJM Interconnection – Auction Procures 134,311 MW of Generation Resources; Supply Responds to Price Signal (July 22, 2025) https://www.pjm.com/-/media/DotCom/about-pjm/newsroom/2025-releases/20250722-pjm-auction-procures-134311-mw-of-generation-resources-supply-responds-to-price-signal.pdf
- Reuters – “Prices Jump 22% in Biggest U.S. Power Grid Energy Auction” (July 22, 2025) https://www.reuters.com/business/energy/biggest-us-power-grid-auction-prices-rise-by-22-new-heights-2025-07-22/
- RTO Insider – “PJM Capacity Prices Hit Price Cap” (July 22, 2025) https://www.rtoinsider.com/110662-pjm-capacity-prices-hit-price-cap/