PJM 2027/28 Capacity Auction Procures 134,479 MW at Price-Cap $329.17/MW-Day
- Capacity & Wholesale Markets News Policy & Markets
Marin Holt
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- Delivery Year: 2027/28
- Cleared Capacity: 134,479 MW
- Clearing Price: $329.17/MW-day
- New Generation and Uprates: 2,669 MW
- Gas Generation Percentage: 45%
PJM’s December 17, 2025 Base Residual Auction for the 2027/28 Delivery Year cleared 134,479 MW of unforced capacity (UCAP) at a price of $329.17/MW-day, according to a report released by PJM. The auction, which was held in the PJM region, procured a significant amount of generation resources, with a total capacity of 134,479 MW. As reported by PJM Inside Lines, this auction was the first to incorporate 2,669 MW of new generation and uprates, marking the first net-positive new-build number in four auctions. The clearing price of $329.17/MW-day is the cap under the new FERC-approved price collar.
The Data
The resource mix cleared in the auction consisted of 45% gas, 21% nuclear, 22% coal, 4% hydro, 3% wind, and 1% solar, as stated in the PJM report. This mix reflects the current energy landscape in the PJM region, with gas being the dominant source of generation. According to PRNewswire, the auction results demonstrate the continued importance of a diverse energy mix in ensuring reliability and affordability for consumers. The 2,669 MW of new generation and uprates included in the auction are a significant addition to the region’s energy capacity.
Why It Matters
The results of the auction have significant implications for the energy market in the PJM region. As noted by PJM, the clearing price of $329.17/MW-day is a key indicator of the market’s overall health and competitiveness. The fact that the auction cleared at the price cap suggests that there may be upward pressure on prices in the future. The inclusion of 2,669 MW of new generation and uprates is also a positive sign for the region’s energy capacity, as it indicates that new resources are being brought online to meet growing demand.
Critical Perspective
While the auction results are generally positive, some observers may note that the reliance on gas as the primary source of generation raises concerns about the region’s long-term energy strategy. As stated in the PJM report, the auction results are subject to various factors, including changes in demand and fuel prices. According to PJM Inside Lines, the auction’s outcome will be closely watched by market participants and regulators, who will be looking for signs of how the energy market will evolve in the coming years. The results of the auction will likely be scrutinized by experts, including those at PJM, to determine the implications for the region’s energy future.
