Maryland’s Energy Crossroads: Balancing Reliability, Affordability, and a Green Future
Maryland is facing a critical juncture in its energy policy, grappling with rising electricity costs, increasing demand – particularly from data centers – and the planned retirement of older power plants. U.S. Energy Secretary Chris Wright has signaled the Trump administration is actively monitoring the situation, seeking to prevent potential grid instability and affordability issues.
The Growing Demand and Tightening Supply
PJM Interconnection, the grid operator for Maryland and 12 other states, has warned that energy consumption is outpacing the development of new supply. This is largely driven by the rapid growth of data centers in Frederick and Prince George’s counties. The Maryland Public Service Commission estimates annual energy demand will increase by 0.3% to 0.32% through 2032, a figure that doesn’t even account for the electricity needs of data centers currently under construction.
This surge in demand comes as some of Maryland’s older power plants, like Brandon Shores and H.A. Wagner, have delayed their planned closures – pushing them to 2029 – to help maintain grid stability. PJM officials have emphasized the require for all available generation until replacement capacity is brought online.
Rising Costs and the Fossil Fuel Debate
Maryland’s average electricity cost rose by 1.2 cents to 15.1 cents per kilowatt-hour between 2019 and 2024, according to a study by Lawrence Berkeley National Laboratory. Inflation and grid infrastructure maintenance were identified as key drivers of these rising costs.
The state’s long-term goal has been to transition away from fossil fuels like coal, natural gas, propane, and heating oil. However, some officials, including U.S. Rep. Andy Harris, argue that this is the wrong time to accelerate the phase-out. He suggests reconsidering energy policies that eliminate any energy production options, particularly given the current high prices and the risk of power outages.
Federal Intervention and Emergency Orders
The Department of Energy (DOE) has already issued emergency orders to keep coal-fired and oil/natural gas-fired generation available in neighboring states like Michigan and Pennsylvania. Secretary Wright indicated the DOE is evaluating opportunities to bring more reliable and affordable energy to Maryland and the broader United States.
In July 2025, the DOE issued its fifth emergency order under Section 202(c) of the Federal Power Act, authorizing the continued operation of the Wagner Generating Station in Maryland beyond its normal operating limits to meet peak demand. This action followed President Trump’s January 20, 2025, Executive Order declaring a national energy emergency.
The Role of PJM Interconnection
PJM Interconnection plays a crucial role in ensuring grid reliability. The organization requested the emergency order for the Wagner Generating Station, coordinating with Talen Energy Corporation to operate the facility as needed to meet anticipated electricity demand. This highlights the importance of regional grid operators in managing energy supply and demand.
FAQ
Q: What is PJM Interconnection?
A: PJM Interconnection is the regional grid operator for Maryland and 12 other states, responsible for coordinating the flow of electricity to ensure reliability.
Q: What is Section 202(c) of the Federal Power Act?
A: This section of the Act authorizes the Secretary of Energy to issue emergency orders to safeguard the reliability of the nation’s electric system.
Q: Why are data centers impacting Maryland’s energy demand?
A: Data centers require significant amounts of electricity to power their servers and cooling systems, leading to a substantial increase in overall energy consumption.
Q: What is the Trump administration’s stance on Maryland’s energy policy?
A: The administration is monitoring the situation closely and seeking to prevent critical plants from retiring, aiming to ensure grid reliability and affordability.
Did you grasp? The DOE has issued five emergency orders since the beginning of 2025 to address energy reliability concerns across the Mid-Atlantic region.
Pro Tip: Understanding your local energy usage and exploring energy efficiency options can help reduce your electricity bill and contribute to a more sustainable energy future.
Stay informed about Maryland’s energy landscape and explore resources for energy efficiency and conservation. Visit the Department of Energy website to learn more about national energy initiatives.
