The Mid-Atlantic region and states along the I-95 corridor experienced an intense heatwave over the past weekend, pushing temperatures to record highs and significantly raising electricity demand. PJM had issued a hot weather advisory for its Mid-Atlantic and Southern regions as 90-plus-degree weather persisted throughout the week of June 17. The advisory was subsequently extended until June 25. This sweltering weather event resulted in the eighth-highest electricity demand in the PJM region. As temperatures soared, residents and businesses relied heavily on air-conditioning and cooling systems, driving electricity consumption to near-unprecedented levels.
Over the past four years, the average hourly demand in PJM has been around 91 GW. However, on June 21, 2024, the average hourly demand spiked to 121.5 GW, marking a substantial 34% increase and making it the second-highest demand day in 2024. The peak demand occurred around 7 PM ET, reaching 147 GW. Coal and natural gas played a crucial role in meeting this demand, with coal generating 25 GW and natural gas 56.8 GW hourly, together accounting for two-thirds of the total generation. This surge is particularly notable given the retirement of 14 GW of coal-powered plants since 2021. Typically, the average hourly coal generation in PJM is around 13 GW, while natural gas averages around 40 GW. On June 21, coal generation nearly doubled, and natural gas increased by 40% to meet the heightened demand.
Hydro and nuclear generation remained steady on the renewable front, while wind resources underperformed. Wind contributed just under 1 GW hourly, compared to its average of 4 GW during the prior weeks. In contrast, solar energy performed exceptionally well due to sunny conditions across most parts of PJM, doubling its usual contribution from an average of 1.7 GW to 3.4 GW on June 21.
As extreme weather events become more frequent, ramping up diverse energy sources, including both traditional and renewable, will be critical to meeting the growing and unpredictable energy demands. This need is particularly urgent given that the National Oceanic and Atmospheric Administration’s forecast predicts above-normal temperatures for much of the United States in July and August, with a particular emphasis on the central and eastern regions.
At EVA, we are committed to providing you with the most up-to-date information on the energy market. We will continue to closely monitor energy demand and its impacts on power and commodity prices, as well as inventory levels. If you would like more detailed insights or have any questions, please feel free to contact us at [email protected]. For more daily and weekly information, make sure to review our Daily Natural Gas Market Advisory Report or our Weekly Term Power Report.