Installed reserve margin represents the surplus capacity above projected peak electricity demand. A healthy reserve margin indicates ample generating capacity, supporting reliability and moderating electricity prices. When reserve margins shrink, scarcity risks grow and prices are more likely to rise.
Installed Reserve Margin
24.8% margin
Direction: Up
NERC’s 2025–2026 Winter Reliability Assessment reports that PJM has an anticipated reserve margin of 35.6%, a typical outage margin of 24.8%, and an extreme-conditions margin of 15.6%【167195777635450†L845-L897】.