A Fast-Path to Affordability: Understanding the Benefits of Energy-Only Resources in PJM

This briefing by RMI argues that PJM can address rapid load growth and high energy costs by streamlining the interconnection process for Energy Resource Interconnection Service (ERIS) resources. Based on analysis by Aurora Energy Research, the document asserts that energy-only resources, particularly wind and solar, are financially viable without capacity revenues and could provide significant cost savings to ratepayers if the interconnection pathway is reformed to prioritize speed and minimal network upgrades.

• The deployment of 10 GW of energy-only resources in PJM by 2028—specifically 5 GW each of wind and solar—could result in nearly $11 billion in savings for ratepayers over the following decade.
• Aurora Energy Research found that ERIS resources are financially viable across nearly all scenarios in four PJM load zones (American Electric Power, Commonwealth Edison, Dominion, and Pennsylvania Power and Light), with internal rates of return (IRR) meeting or exceeding a 9% hurdle rate. In the Central Scenario, solar IRRs ranged from 9% to 10.2%, while wind IRRs ranged from 9.2% to 13.6%.
• ERIS resources can contribute to grid reliability, particularly during winter peak load days. Onshore wind resources in PJM had an average capacity factor of 39% on peak winter load days over the last ten years and showed higher generator availability rates than coal and gas resources during Winter Storm Elliott.
• To catalyze the uptake of ERIS resources, PJM should reform its interconnection process by creating a separate and parallel study track for ERIS, limiting network upgrade costs and timelines to the point of interconnection, and addressing broader transmission needs through existing planning processes like the Regional Transmission Expansion Plan (RTEP).

APA

RMI (2026). A Fast-Path to Affordability: Understanding the Benefits of Energy-Only Resources in PJM. https://rmi.org/resources/a-fast-path-to-affordability-understanding-the-benefits-of-energy-only-resources-in-pjm/

Chicago

RMI. A Fast-Path to Affordability: Understanding the Benefits of Energy-Only Resources in PJM. 2026. https://rmi.org/resources/a-fast-path-to-affordability-understanding-the-benefits-of-energy-only-resources-in-pjm/.

Wikipedia

{{cite report |author=RMI |title=A Fast-Path to Affordability: Understanding the Benefits of Energy-Only Resources in PJM |date=11 May 2026 |url=https://rmi.org/resources/a-fast-path-to-affordability-understanding-the-benefits-of-energy-only-resources-in-pjm/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026fastpath, author = {{RMI}}, title = {{A Fast-Path to Affordability: Understanding the Benefits of Energy-Only Resources in PJM}}, institution = {RMI}, year = {2026}, month = may, url = {https://rmi.org/resources/a-fast-path-to-affordability-understanding-the-benefits-of-energy-only-resources-in-pjm/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }