Key Takeaways
- PJM Interconnection warns that Maryland’s rapid transition to green energy is leading to increased electricity costs due to supply shortages.
- Capacity auction prices in Maryland jumped to a record high of $329.17 per megawatt for 2026, reflecting a critical supply-demand imbalance.
- Governor Wes Moore’s offshore wind initiatives may face regulatory challenges, further complicating the transition to renewable energy.
Concern Over Energy Costs
The Mid-Atlantic’s power grid operator, PJM Interconnection, raised alarms about Maryland’s state policies that are hastening fossil fuel plant closures amidst surging electricity demand. While Governor Wes Moore asserts that his green energy strategy has not led to increased electricity bills, PJM claims the reduction of energy supply conflicts sharply with economic growth, leading to soaring prices.
PJM’s capacity auction for 2026 revealed a significant price surge, now set at $329.17 per megawatt (MW), a staggering 22% increase from last year and over 1038% higher than the $28.92 per MW rate when Moore assumed office. PJM outlined the critical nature of these auctions, which help secure electricity when demand peaks, indicating that a tighter supply could harm reliability.
Maryland’s energy landscape has shifted considerably, with 6,000 MW of electricity lost since 2018 and only 1,600 MW added. This loss is attributed to both economic factors and state decarbonization policies. PJM mentioned that generators are retiring quicker than replacements can be established, leaving the energy grid increasingly fragile.
Despite the pressing issues, Governor Moore remains committed to his green energy vision, asserting there is no evidence linking his agenda to rising costs. He believes that increasing options within the energy sector, including solar, wind, and nuclear, will eventually lower prices. However, PJM cautions that current green initiatives fail to meet demand, with numerous approved projects stalled due to regulatory and financial setbacks.
Offshore wind is a key element of Moore’s clean energy plan, with the governor aiming to transition Maryland to 100% carbon-free energy by 2035. However, the U.S. Environmental Protection Agency recently raised concerns over improperly issued offshore wind permits, potentially jeopardizing these plans.
PJM urged Maryland policymakers to delay any further shutdown of energy sources until enough replacement generation is operational. Some state lawmakers expressed skepticism about the green energy focus, emphasizing the ongoing challenges and potential increases in electricity bills.
In summary, while Maryland’s commitment to renewable energy continues, significant concerns remain regarding supply stability, regulatory challenges, and rising costs for consumers, prompting calls for a more balanced approach to energy policy.
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