The U.S. Department of Energy issued an emergency order on October 12, 2026 directing PJM Interconnection to use additional generating resources, effective from October 13 through October 16. The order authorizes specified power plants to operate as needed for reliability and allows backup generators at large facilities to help reduce grid demand during emergencies.
Writing in sponsored content from Solar Mounts LLC, Terence Parker, a Michigan resident and team member at the company, described the directive as a wake-up call for Michigan and the rest of the PJM region. He said the order does not make blackouts inevitable, but it highlights serious challenges for the electricity system and the need to add capacity before emergency measures become routine.
Solar Mounts LLC designs and manufactures mounting systems for commercial and utility-scale solar projects and is based in rural Calhoun County, Michigan. Parker said the company sees implications for electricity prices, air quality, local businesses and families across the state.
Capacity prices and the cost of delay
Parker pointed to PJM capacity auction results, which he said reached $329.17 per megawatt-day for the 2026–2027 delivery year and $333.44 for 2027–2028, with the later auction falling short of PJM's stated reliability requirement. Capacity costs are only one part of a customer's electricity bill, he noted, but rising prices signal growing pressure on consumers.
Under the order, designated generating units may exceed specified operating limits when needed for reliability, and PJM may direct backup generation at data centers and other large facilities, potentially including diesel generators as a last resort. Parker said running fossil-fueled plants more frequently can increase emissions depending on the units involved, while diesel generators would add local noise and expose operators to high fuel prices. If such measures become more common, he argued, the question is why cleaner generation and storage are not coming online sooner.
Winter outlook and planning gaps
NOAA's October 15, 2026 winter outlook anticipates warmer-than-average conditions across much of the northern United States, including the Midwest, influenced by a strong El Niño. Parker argued that seasonal forecasts cannot capture every period of extreme demand, and that aging infrastructure, maintenance, changing weather and rising electricity consumption reinforce the need for advance planning. Temporary authority to run additional fossil-fueled resources, he wrote, cannot replace long-term investment in generation.
Solar, wind, storage and interconnection
According to Parker, utility-scale solar, wind and battery storage can help meet demand on timelines many conventional generation projects cannot match. Suitable solar projects may be built within 18 months depending on permitting, equipment and interconnection, whereas new nuclear facilities generally require substantially longer development periods. Solar and wind reduce emissions when they displace fossil-fueled generation, he said, and batteries store surplus electricity for higher-demand periods, though actual emissions benefits depend on which generators are displaced and when electricity is delivered.
He also called for faster interconnection reviews, saying qualified solar projects should not remain in queues for years because of avoidable administrative delays, and for better coordination among PJM, utilities, regulators, developers and state governments alongside necessary transmission upgrades.
Farmland, alternative sites and data centers
Parker acknowledged concerns about installing solar on productive farmland in Calhoun County. He said well-designed projects can include restoration plans that allow agricultural use to resume when leases end, and that solar leases can give farmers supplemental income when crop prices fail to keep pace with production costs. Agrivoltaic systems combine generation with compatible crops or livestock, he noted, while parking lots, commercial properties, brownfields and landfills can also host solar; carports provide electricity, shade and weather protection, and community solar broadens access.
On data centers, Parker said growing demand, particularly in Virginia and other parts of PJM's territory, is adding pressure to an already constrained grid, and that developers of new hyperscale facilities should demonstrate how they will secure adequate electricity and pay their fair share of supporting infrastructure. He said requiring every facility to build a gas-fired peaker plant is not necessarily the best answer given equipment and supply-chain constraints and the emissions and operating costs of added fossil-fuel generation, arguing that combinations of dedicated generation, renewable energy contracts, batteries, flexible demand and grid upgrades tailored to each location are more practical. Existing facilities, he added, should reduce peak demand where possible, with energy efficiency among the most immediate options.
Solar Mounts said it supports faster approvals, better grid planning and a serious commitment to adding generation and storage before shortages worsen, warning that repeated emergency orders, rising capacity costs and heavier reliance on high-emission generation are not sound long-term strategies.