New Brattle Report Examines PJM’s Energy Storage Outlook
Prepared for the US Energy Storage Coalition
In a new report commissioned by the US Energy Storage Coalition, Brattle experts assess the outlook for energy storage in PJM, the largest regional transmission organization (RTO) in the US. The authors find that PJM will need to build at least 16 gigawatts (GW) of energy storage by 2032 and 23 GW by 2040—beyond feasible new natural gas plants, wind, solar, and deferred retirements—to serve anticipated load growth, prevent power outages, and help stabilize electricity prices.
The report affirms the need for PJM to add new capacity, including energy storage. The authors find that by adding storage along with other resources, PJM could save 30% in wholesale market costs from 2028 through 2045, compared to a hypothetical system without storage availability.
If the region can effectively deploy energy storage, the report finds that it could:
- Prevent significant, recurring power outages due to energy shortfalls amid anticipated load growth;
- Help serve existing homes and businesses, as well as new data centers and factories, by adding 30 GW of new energy storage and natural gas resources; and
- Complement gas generation by using energy storage to manage fluctuating supply and demand, enabling standby gas resources to operate more efficiently as baseload power.
“Outlook for Energy Storage in PJM” was authored by Principals Akarsh Sheilendranath and Johannes Pfeifenberger, Energy Associate Kate Peters, and Energy Specialist Audrey Yan. The full report is available below.
