Back to OurEnergyLibrary search




Private Equity’s Losing Bet on PJM Coal Plants

Private Equity’s Losing Bet on PJM Coal Plants

Full Title: Private Equity’s Losing Bet on PJM Coal Plants
Author(s): Dennis Wamsted, Seth Feaster, David Schlissel
Publisher(s): Institute for Energy Economics and Financial Analysis (IEEFA)
Publication Date: June 2, 2022
Full Text: Download Resource
Description (excerpt):

This is shaping up to be an extraordinarily difficult year for the private equity firms operating in the PJM power marketespecially those that own some of the region’s aging coalfired power plants.

One key financial support, the price PJM pays for capacity (essentially a payment that power plants receive for promising to be available when needed), will drop from $140 per megawattday to just $50 this month for the 202223 delivery year. This will reduce revenues for generators across the board, but it is particularly troublesome for the region’s coal plants, which are struggling to remain competitive in the daytoday energy market as well.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of OurEnergyPolicy.org, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

Sign up for our Press Release Distribution List

    Your Name (required)

    Your Email (required)

    Please sign me up to receive press releases from OurEnergyPolicy.org.