By Terence Parker, Michigan resident and Solar Mounts LLC team member
The U.S. Department of Energy’s October 12, 2026, emergency order directing PJM Interconnection to use additional generating resources should be a wake-up call for Michigan and the entire PJM region. Effective October 13–16, 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.
This does not mean blackouts are inevitable. However, it highlights the serious challenges facing our electricity system and the need to add capacity before emergency measures become routine.
As a Michigan-based company, Solar Mounts LLC, a designer and manufacturer of commercial and utility-scale solar mounting systems, recognizes the potential implications for electricity prices, air quality, local businesses, and families across the state.
Rising Costs and the Consequences of Delayed Generation
PJM’s capacity auctions have exposed the difficulty of securing enough electricity for future demand. Prices reached $329.17 per megawatt-day for the 2026–2027 delivery year and $333.44 for 2027–2028, with the latter auction falling short of PJM’s stated reliability requirement.
Source: Vicinity Energy’s Analysis of PJM Capacity Auctions
Capacity costs are only one component of electricity bills, but rising prices signal growing pressure on consumers. We need more power before shortages force increasingly expensive emergency responses.
The October 2026 order permits designated generating units to exceed specified operating limits when necessary for reliability. It also authorizes PJM to direct backup generation at data centers and other large facilities, potentially including diesel generators as a last resort.
Running fossil-fuel plants more frequently can increase emissions, depending on the units involved. Operating diesel generators will worsen local noise pollution and expose operators to high diesel prices. If these measures become more common, we should ask why cleaner generation and storage are not coming online faster.
Weather Uncertainty Makes Planning Urgent
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.
Source: NOAA’s 2026–2027 U.S. Winter Outlook
Seasonal forecasts cannot predict every period of extreme demand. Aging infrastructure, maintenance, changing weather, and growing electricity consumption reinforce the need for advance planning. Temporary authority to run additional fossil-fuel resources cannot replace long-term investment in generation.
Solar, Wind, and Batteries Can Help Close the Gap
Utility-scale solar, wind, and battery storage can help meet demand on timelines that many conventional generation projects cannot match. Suitable solar projects may be built within 18 months, depending on permitting, equipment, and interconnection. New nuclear facilities generally require substantially longer development periods.
Solar and wind will reduce emissions when they displace electricity from fossil-fuel generators. Batteries store surplus electricity for periods of higher demand. Note: actual emissions benefits depend on which generators are displaced and when electricity is delivered.
Faster interconnection reviews are also essential. Qualified solar projects shouldn’t remain in queues for years because of avoidable administrative delays. Better coordination among PJM, utilities, regulators, developers, and state governments, alongside necessary transmission upgrades, will bring capacity online sooner.
Solar Development and Agriculture Can Coexist
At Solar Mounts LLC, we witness concerns about installing solar on productive farmland here in rural Calhoun County (home to Solar Mounts LLC). However, well-designed projects can include restoration plans that allow agricultural use to resume when leases end. Solar leases can also provide farmers with supplemental income when crop prices fail to keep pace with production costs.
Agrivoltaic systems combine electricity generation with compatible crops or livestock. Thoughtful design and community engagement can balance renewable energy development with agricultural productivity, rural traditions, and farmland preservation.
Opportunities extend beyond prime farmland. Parking lots, commercial properties, brownfields, landfills, and other underutilized sites can accommodate solar generation. Solar carports provide electricity, shade, and weather protection, while community solar expands access for people unable or unwilling to install their own panels.
Solar Mounts LLC supports practical, site-appropriate solutions that expand generation while respecting farmers, landowners, and rural communities.
Hyperscale Data Centers Must Help Provide Their Own Power
Growing data center demand, particularly in Virginia and other parts of PJM’s territory, is adding pressure to an already constrained grid. Consequently, developers of new hyperscale facilities should demonstrate how they will secure adequate electricity and pay their fair share of supporting infrastructure. Dedicated generation, renewable energy contracts, batteries, flexible demand, and grid upgrades can all contribute.
Requiring every facility to build a gas-fired peaker plant is not necessarily the best answer. Gas turbines face equipment and supply-chain constraints, while additional fossil-fuel generation carries emissions and operating costs. A combination of solutions tailored to each location is more practical.
Existing facilities should also reduce peak demand where possible. Energy efficiency remains one of the most immediate ways businesses can limit electricity consumption.
Build Before the Next Emergency
Solar Mounts LLC sees the opportunity to expand commercial and utility-scale solar infrastructure across Michigan and the country. We encourage this expansion by supporting faster approvals, better grid planning, and a serious commitment to adding power generation and energy storage before shortages worsen.
Reliable electricity underpins our economy, jobs, and daily lives. Repeated emergency orders, rising capacity costs, and greater reliance on high-emission generation are not sound long-term strategies.
We shouldn’t wait for the next crisis to build the power system we already know we need.
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