The PJM Interconnection’s forecast highlights significant growth in both summer and winter peak energy demands over the next two decades:
This growth places immense pressure on energy infrastructure, highlighting the need for modernization and proactive investment.
The net energy load is projected to grow by 4.8% annually over the next 10 years, reaching 1,328,045 GWh by 2035. This represents a 495,264 GWh increase compared to 2025. Over a 20-year horizon, growth slows to an average of 2.9% annually, with net energy load forecasted to hit 1,482,068 GWh by 2045.
The rise of behind-the-meter solar generation, battery storage systems, and the increasing adoption of EVs are reshaping energy consumption patterns. PJM’s report integrates data from S&P Global on solar and battery systems, as well as EV adoption across light, medium, and heavy-duty vehicles, indicating that these technologies will significantly influence future load demands.
Specific regions within PJM’s footprint are experiencing unique growth patterns:
PJM’s forecasts are based on Moody’s Analytics’ economic data, with an emphasis on evolving industrial demands, residential usage trends, and the broader shift towards electrification.
The integration of distributed solar and wind energy sources presents both challenges and opportunities. Balancing intermittent renewable generation with growing peak demands will require advanced grid management solutions and investment in storage technologies.
The forecasted 3.1% annual growth in summer peak loads underscores the urgent need for infrastructure modernization. Utilities and regional transmission organizations must focus on:
The report underscores the importance of leveraging data for energy planning. For instance, adjustments in certain zones, such as peak shaving programs in East Kentucky Power Cooperative (EKPC), highlight the value of proactive load management strategies.
For policymakers, utilities, and businesses, the projected 3.1% growth in energy demand represents both a challenge and an opportunity. Key takeaways include: