1. Bilateral Matchmaking: PJM will help connect large electricity users (i.e. data centers) with developers of new generation or other capacity resources. The buyer and seller can negotiate a contract lasting at least five delivery years. Essentially, a large new customer can directly support the new generation needed to serve its electricity demand.
2. Central Procurement: PJM will also hold an auction starting September 30. New resources that can be operating by June 1, 2032, can compete for capacity contracts lasting up to 15 years. The costs are intended to reflect areas experiencing significant load growth, including growth associated with large new loads, while the ultimate allocation to customers will depend on state regulatory frameworks and retail structures.

Any capacity secured through bilateral deals before the auction can produce qualifying offsets that reduce the amount PJM needs to procure through the central auction. For example, if bilateral agreements secure 2 GW, PJM would need to procure roughly 4.8 GW of the 6.8 GW target through the auction.