Maryland faces energy crisis as aging power plants retire and imports rise

The ECM Committee Session held on January 15, 2025, focused on critical discussions regarding Maryland's energy landscape, particularly the challenges and changes in power generation resources. The meeting began with an overview of the current state of data centers in Maryland, highlighting interest in developing facilities in Frederick County and along the I-95 corridor between Washington, D.C., and Baltimore.

The committee reviewed Maryland's energy portfolio, which includes natural gas, coal, nuclear, and limited renewable sources such as solar and wind. It was noted that while natural gas and nuclear power dominate the state's energy supply, Maryland remains a net importer of electricity, relying on neighboring states like Pennsylvania and West Virginia for additional power. This dependency raises concerns, especially as neighboring states may prioritize their own energy needs, potentially limiting Maryland's access to necessary resources.

A significant point of discussion was the decline in Maryland's energy resources, with a reported loss of approximately 6,000 megawatts since 2018, while only 1,600 megawatts have been added. The impending retirements of aging facilities, including the Brandon Shores and Wagner plants, could exacerbate this issue, leading to a projected shortfall of 8,000 megawatts. The committee emphasized the unsustainability of this trend and the need for new energy generation to meet future demands.

The conversation also touched on the reasons behind the closures of older coal and oil plants, attributing them to age, safety concerns, and the increasing costs associated with meeting environmental regulations. It was clarified that these retirements were voluntary decisions made by the plant owners, influenced by economic factors and regulatory pressures rather than direct state mandates.

Additionally, the committee addressed the ongoing challenges with the interconnection queue at PJM, which has seen significant delays due to a backlog of applications from developers seeking to connect to the grid. However, reforms initiated in 2022 have begun to alleviate this issue, with 50,000 megawatts cleared from the queue, although many projects still face hurdles to development.

In conclusion, the ECM Committee Session highlighted the pressing need for Maryland to address its energy resource challenges, particularly in light of aging infrastructure and increasing demand. The discussions underscored the importance of strategic planning and investment in new energy generation to ensure a reliable and sustainable power supply for the future.