PJM’s capacity auction sends a clear signal to investors in batteries and other dispatchable capacity.

The latest Base Residual Auction (BRA) - for the 2026/2027 delivery year - set a new benchmark for the market.

Prices cleared at the FERC-approved $329/MW-day price cap. It’s the highest RTO-level price PJM has ever seen. And while only four battery projects offered capacity and cleared, the revenue potential for those batteries jumps 20% from capacity payments alone.

For battery investors, the signal is unmistakable: the market is ready to pay - and pay well - for flexible capacity.

​​Subscribers to Modo Energy’s research will learn:

• Where the capacity auction cleared and how prices stack up against past years
• How batteries featured - and the room for more in future BRAs
• What a battery could earn from PJM capacity payments
• The barriers, market shifts, and signals investors should watch

​Contact the US Research team at brandt@modoenergy.com or deeksha@modoenergy.com with questions. To learn more about subscribing to Modo Energy’s research, click here.

1. Capacity prices max out at $329/MW-day

The 2026/27 BRA cleared at $329/MW‑day, 22% higher than last year’s RTO price. The auction also hit the price cap that will be in place for this auction and the next.