N.J. Gov. Sherrill issues executive order on energy
New Jersey Governor Mikie Sherrill has declared a state of emergency related to rising electricity rates and signed an executive order aimed at expanding renewable energy generation within the state. The move, fulfilling a campaign promise, comes as the state grapples with a shrinking gap between electricity supply and demand.
Addressing the Energy Crisis
The governor’s order focuses on increasing solar generation and battery storage capacity. It also calls for an expansion of natural gas plants and a study into the potential for new nuclear power. Currently, natural gas generates 49% of New Jersey’s electricity, while nuclear power accounts for 42%.
Rising Costs and Grid Challenges
Recent auctions conducted by PJM Interconnection to secure future energy supplies have resulted in record-breaking price increases. These auctions cost New Jersey ratepayers a combined $4 million in December and July alone. In December, PJM was unable to secure sufficient power supplies, potentially leading to rolling brownouts or blackouts as early as June 2027.
A contributing factor to the rising costs is the emergence of “ghost loads”— speculative future demand from entities like data centers that may not materialize, yet still drive up prices. While PJM has stated it is working to expedite new power connections, critics contend the grid operator has been slow to integrate renewable energy sources.
A Multi-Pronged Approach
Governor Sherrill intends to collaborate with other regional governors to encourage PJM to increase power flow to the grid and reduce costs. Her immediate focus is on solar and battery storage, alongside modernizing existing natural gas generation and exploring long-term nuclear power options. Alex Ambrose, a policy analyst with New Jersey Policy Perspective, noted the governor is “focusing on how can we build out as much renewable energy as possible… and how can we do it faster and cheaper by cutting red tape.”
However, Ambrose expressed reservations about expanding natural gas generation, stating, “There is no reason, economical or otherwise, that we should build new natural gas plants in New Jersey.”
Frequently Asked Questions
What prompted the governor’s executive order?
Rising electricity rates and a declared state of emergency stemming from a shrinking gap between electricity supply and demand prompted the order.
What is PJM Interconnection’s role in this situation?
PJM Interconnection is the regional grid operator responsible for securing sufficient energy supplies through auctions, and its inability to secure enough power in recent auctions has contributed to rising costs and potential grid instability.
What are “ghost loads”?
“Ghost loads” refer to projected future electricity demand from new customers, such as data centers, that may not actually materialize but still influence electricity prices.
How will the balance between renewable energy sources, natural gas, and nuclear power shape New Jersey’s energy future?