In this episode, we dive into the labyrinth of PJM's latest regulatory moves to address the insatiable electricity demand from data centers and the looming generation supply shortfall. We break down the newly approved Reliability Backstop Procurement (RBP) plan, which will allow utilities and large loads to secure capacity directly from suppliers through a one-time bilateral auction starting in the 2028-2029 delivery year.

Key topics covered in this video:

The New Auction Rules: Learn how load-serving entities will secure contracts spanning 2 to 15 years with a volume-weighted price cap set at $555 per megawatt-day.

The Price Jump: Discover why this new price cap is considerably higher than the current $325/MW-day limit, and how the sequential auction formula is designed to keep generators from getting too greedy and gaining immense leverage.

The Supply Chain Reality Check: We explore PJM's recent white paper, "Powering Reliability Through Market Design," which reveals that the estimated Cost of New Entry (CONE) for new gas-fired turbines has nearly doubled due to overwhelmed global supply chains.

The Risk of Capital Flight: Could capping prices at $555 simply push energy developers to invest in supply resources in other states or countries with better revenue opportunities?

The Future of Energy Markets: We discuss whether this crisis will eventually push PJM toward a Texas-style approach with no capacity market at all, and examine the irony of calling today's highly complex energy landscape "deregulated"

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

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The unprecedented rise of AI and massive data centers is putting severe strain on the electric grid, prompting a major regulatory crackdown
. Large loads pose a unique threat because they are huge (sometimes requiring gigawatts of power), desperate for quick interconnection, and highly unpredictable due to the prevalence of "phantom loads"—projected facilities that sit in interconnection queues but may never actually be built
. Furthermore, these large language model operations can physically destabilize the grid by interfering with the 60-hertz sine wave and abruptly snapping offline during minor power quality fluctuations, which has already caused over-frequency events
.
To bring order to this chaotic "land rush" for power, the Federal Energy Regulatory Commission (FERC) has issued a show cause order under Section 206 of the Federal Power Act
. The directive targets six major regional grid operators: PJM, MISO, SPP, CAISO, ISO-NE, and NYISO
. Finding that current tariffs are likely "unjust and unreasonable," FERC is demanding that grid operators either justify their existing rules or file reforms within 60 days
.
FERC requires the grid operators to address five specific categories of reform:
Developing more efficient transmission study processes and evaluating Grid Enhancing Technologies (GETs) to maximize existing grid capacity without waiting for multi-year physical upgrades
.
Providing greater cost transparency to ensure the massive infrastructure costs of these upgrades are not unfairly shifted to everyday ratepayers
.
Accommodating co-location agreements, establishing clear procedures for data centers that bypass traditional grids to build directly next to power plants
.
Creating new transmission services for flexible loads that can throttle their operations or switch to onsite batteries to support grid reliability
.
Developing a transparent process to study how local grid stability is impacted when massive new loads are placed close to existing generation assets
.
In addition to the 60-day reform deadline, the grid operators have just 30 days to submit a detailed report outlining how they will ensure sufficient generation exists to serve both everyday users and these massive new data centers
. Ultimately, the mandate is designed to force grid planners to look at best practices across the country and implement rigorous rules so that existing ratepayers do not get hurt by the rapid expansion of AI technologies

Support the show

🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

🌎 Learn More
Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.

General Motors has officially entered the grid storage market with a strategic investment in Peak Energy to manufacture next-generation sodium-ion batteries. With electricity demand rising and data centers consuming a growing share of US power, the battery conversation is shifting from familiar EV metrics to long-term grid reliability and affordability.

In this episode, we break down why GM's VP of Battery & Sustainability, Kurt Kelty, believes sodium-ion will be a "defining chemistry" for the future. We explore the massive advantages of sodium-ion technology, including its lower cost, stability over broad temperature ranges, and an incredible estimated 20,000-cycle lifespan, meaning they could last a half-century before needing replacement. Plus, because they have the potential to operate without active cooling, these systems require far less hardware, maintenance, and parasitic energy losses.

We also look at the booming US battery energy storage market, which hit a record 9.7 GWh in Q1 2026, and discuss the newly launched American Battery Leadership Coalition, an industry group pushing for US-made sodium-ion technology to reduce reliance on the Chinese supply chain. GM plans to prototype these stationary storage cells by late 2026, aiming for commercialization by 2028.

Support the show

🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

🌎 Learn More
Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.