(The Center Square) – As energy policy debates continue in Pennsylvania to meet rising energy demand while keeping consumer prices affordable, we cannot lose sight of the fact that competitive markets have greatly benefited consumers for decades.
Recent developments within PJM’s Reliability Resource Initiative underscore a crucial point: preserving and improving competitive markets, not a return to utility-owned generation or other anti-competition policies, is the most effective way to meet our growing energy demands. The volume of applications received – 94 projects totaling 26.6 GW – demonstrates the dynamism and responsiveness of a market-driven approach. That’s enough electricity generated to meet the needs of over 22 million homes!
These applications, encompassing diverse technologies from all energy sources, highlight the creative solutions that emerge when innovation is prioritized. PJM’s FERC-approved rating system, designed to select up to 50 projects for rapid deployment by 2030, emphasizes both speed and reliability. This strategic selection process ensures that our grid receives the necessary reinforcements without burdening ratepayers with undue financial risk.
Contrast this with the outdated model of utility-owned generation, where captive ratepayers bear the brunt of financial risks and utility profits are guaranteed. Such a system stifles innovation and limits the potential for cost-effective solutions. The PJM initiative, by contrast, fosters competition and drives efficiency within a competitive environment.
The upcoming announcement of the selected projects will further illustrate the power of market-based solutions. We are witnessing firsthand how competitive markets are delivering the generation capacity needed to secure our energy future, without reverting to outdated and inefficient practices. It’s clear: markets are working, and we must continue to embrace them to ensure a reliable and affordable energy supply.
