Welcome to Grid Brief! Here’s what we’re looking at today: how states are responding to PJM’s July capacity auction, Russia plans rapid nuclear buildout, and Netflix seeks to decarbonize studio sets.

How States are Responding to the PJM Auction

In July, PJM Interconnection held its capacity auction which saw prices jump from a record-low cost of $28.92 per megawatt-day to $269.92 per megawatt-day—a 200% increase. Total capacity costs for the upcoming delivery year, which will start on June 1, will increase by $14.7 billion versus the current year.

Ethan Howland of UtilityDive recently reported on what PJM states and utilities are doing to address the results of the auction.

In competitive states like Pennsylvania and Maryland, lawmakers are proposing bills to increase generation. PA state senator Gene Yaw (R) has introduced two bills that will bolster the grid in the Keystone State. The first would create the Pennsylvania Baseload Energy Development Fund, which would be modeled after a similar program in Texas. This $ 5 billion fund would provide low-interest grants and loans to “finance the construction, maintenance, modernization and operation of electric generation facilities.”

A second bill from Yaw would simplify energy permitting in Pennsylvania by setting a single statute of limitations for all projects. The goal of this bill is to provide regulatory certainty to developers to encourage more investment.

Meanwhile, utilities are looking for ways to reform the PJM auction structure. Exelon, FirstEnergy, PPL, and Duquesne Light have floated the idea of bringing their own generation online and are looking to have their plan greenlit by state regulators. Despite the utilities’ enthusiasm, there does not appear to be much momentum for this plan among states.

Meanwhile, ratepayer advocacy groups are pushing PJM to include reliability must-run contracts (RMR)—which are power plants that have been given contracts to continue operating past planned retirements—in its auction. While grid operators in New York, California, and New England include RMR resources, PJM does not. Advocates argue that excluding them in the past auction added about $5 billion in costs for consumers.

Russia Plans for Nuclear Power Buildout

Russia is embracing a nuclear energy future, according to a recent report from the Unified Energy System of Russia. The draft report, which is subject to government approval, calls for the construction of 34 new nuclear power reactors by 2042. “The units could replace some existing reactors; others would be in new sites. Some of the included in the draft plan already are under construction,” according to Darrell Proctor of Power Magazine.

If the plan is fully implemented, it would increase Russia’s share of electricity from nuclear power from 18.9% today to 23.5% in 2042.

In addition to rapidly building out its domestic supply of nuclear power, Russia is also vying to be a global leader in its exports. According to the World Nuclear Association, the country has confirmed or planned for the export construction of over 20 nuclear power reactors. Notable projects under construction include El Dabaa units 1 through 4 in Egypt and Rooppur 1 and 2 in Bangladesh.

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Conversation Starters

• Netflix wants to shrink the carbon footprint of your favorite show (Bloomberg)

  Fan favorites such as Virgin River, Stranger Things, and Bridgerton are replacing diesel generators with greener alternatives to power show sets. The streaming giant has set ambitious goals to halve its carbon emissions by 2030 (versus 2019 levels).

• U.S. authorities seek to develop solar on 31 million acres of federal land (PV Magazine)

  A new roadmap released by the Bureau of Land Management would drive solar development closer to transmission lines or on previously disturbed lands to avoid protected lands, sensitive cultural resources, and important wildlife habitats.

• How a Moroccan fishing town is fighting water scarcity in a warming world (The Wall Street Journal)

  “Agadir sits on Morocco’s Atlantic coast, with the vast Sahara at its back. It is here, beneath Morocco’s cloudless skies and on its lengthy coastline that a desalination plant running on renewable energy has been built—one of a growing number of such plants starting up as renewable costs drop.”

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