Department of Energy Issues Emergency Order for Grid Operators

On Monday evening, the Department of Energy (DOE) issued an emergency order aimed at major grid operators following a request from the government. PJM Interconnections specifically sought this order to allow the Wagner Generation Station in Maryland to operate beyond its usual limits. The DOE stated that PJM and Talen Energy can utilize “specified units” to meet the rising demand. There’s been considerable concern among major grid operators as the summer heat intensifies, leading to multiple recent emergency orders aimed at maintaining grid reliability.

“This order is essential to decreasing the risk of blackouts during peak demand for millions of Americans,” explained DOE Secretary Chris Wright. “The administration is committed to promptly employing all available resources to ensure the reliability, affordability, and security of the nation’s energy system.”

Recently, a report from PJM highlighted that as electricity demand increases and older power plants close down, concerns over the reliability of energy resources are intensifying. Typically, energy sector experts have cautioned that U.S. electricity demand is projected to outpace supply in the coming years, which may lead to significant power outages. A report released by the DOE on July 9 warned that power outages could rise a hundredfold by 2030 if the U.S. continues to retire plants without adequate replacements.

A representative from Talen mentioned that they were aware of the situation and did not object to PJM’s request for the DOE to grant Wagner Unit 4 an exemption from air permits, allowing for continuous operation to support reliability.

As of now, neither the DOE nor PJM has responded to inquiries for further comments.