PJM secures new resources to meet electric power demand

Sponsored by

The results of PJM Interconnection's recent auction to procure power supplies three years into the future continues an overall trend toward more gas-fired generation and increasing diversity of resources. They also show a shift in demand resources from limited summer availability to extended and annual availability, which improves the usefulness of demand response.

The clearing price for resources, which include generation, annual demand response and energy efficiency, is $120/megawatt-day for all of PJM except the PSE&G location deliverability area. The PSEG area is the only constrained area in this auction. The clearing price for resources in PSEG is $215/MW-day.

"Capacity prices in the western half of the market have increased to make prices more uniform across the system," said Andrew L. Ott, executive vice president – Markets. "Frankly, this is the kind of price that sends the right signals to generators. And, we've seen developers respond in this auction with new resources concentrated in the most capacity and transmission needy areas."

The Reliability Pricing Model auction produced an adequate amount of resources to serve the PJM region in the June 1, 2017 to May 31, 2018 delivery year. The total capacity procured in the auction was 167,004 MW, which represents a 19.7 reserve margin. One megawatt is enough to power about 1,000 homes.

PJM, which administers the wholesale power market, holds a three-year forward capacity auction each spring. The auction establishes contracts with suppliers who commit to make their facilities available to provide electricity for the PJM system for a year. Prices are established through competitive bidding.

The shift to increased amounts of new natural gas-fired generation continues with roughly 4,800 MW of new combined-cycle generation clearing for the first time in this auction. Almost all of this cleared new capacity is located downstream of west-to-east transmission constraints or in areas with capacity needs.

A total of 10,975 MW of demand response was procured — a decrease of about 1,433 MW from last year's auction. However, there was a significant shift to the types of demand resources that have more flexibility and a greater contribution to reliability. There were 1,401 MW more "annual" and 4,693 MW "extended summer" demand resources clearing in this auction than last year, while the amount of "summer-only" demand resources declined by 7,527MW since last year.

This shift gives system operators more year-round flexibility in drawing on demand response when needed. PJM experienced the need for flexible demand response during recent extreme weather, both in September 2013 and January 2014.

Energy efficiency continues its growth trend in PJM's capacity auctions. This year, a record 1,339 MW of energy efficiency was procured in the auction, an increase of 222 MW from last year's auction.

Sponsored by

CURRENT ARTICLES

New York to give low-cost electricity to Amazon, Bausch & Lomb

07/31/2015

The companies announced Thursday have promised to retain more than 1,600 jobs and create more than 730 new ones 

Wind power research now focuses on cheaper, lighter

07/31/2015

Lightweight materials are seeing greater adoption in wind turbine manufacturing as evidenced by patent trends 

The world’s most powerful offshore wind farms

The world’s most powerful offshore wind farms

Duke Energy Progress buys NCEMPA power plants

07/31/2015

NCEMPA's ownership interest in these plants represented about 700 MW of generating capacity

Fort Calhoun nuclear plant returns to full power

07/31/2015

Fort Calhoun sits along the Missouri River about 20 miles north of Omaha 

Vegas-area coal plant owners to pay $4.3 million to settle lawsuit

07/31/2015

At its peak, the four-unit power plant produced up to 557 MW of electricity

Saskatoon to roll out Elster AMI solution

07/31/2015

The city deployed 30,000 digital smart meters from Elster for new and replacement installations

FEATURED ENERGY JOBS
View more Job Listings >>

INDUSTRY STOCKS

ON DEMAND WEBCASTS

Solar + Storage: Capturing Opportunities and Overcoming Challenges

The convergence of solar and energy storage applications is under way. The combined application o...

Storage Enters the Global Stage: What’s the value proposition for your region?

For electricity storage, the events of the last two years have shown that the skepticism around t...

How to deploy mobile forms + devices to speed up field service processes & reporting

Overcoming the pain points associated with any process is much simpler and more cost effective th...

Beyond Integration: Three Dynamics Reshaping Renewables and the Grid

In a unique industry research initiative, DNV GL gathered views from over 1,600 energy sector par...

Engaging the Small and Mid-sized Business (SMB) Marketplace

This session will outline how Duke Energy leveraged Voice of Customer insights, previous experien...

EL&P BUYER'S GUIDE PRODUCTS

Cavitation Peening

AREVA developed its innovative solution for asset management, significantly extending the life of reactor components. Cavitation Peening is a perma...

Nuclear Horizontal Modular Storage (NUHOMS®)

AREVA TN’s NRC-licensed NUHOMS® system ensures the highest safety and lowest dose performance. With no tipping, tripping and sliding, you have the...

Decontamination & Decommissioning

Decommissioning strategy development, cost estimates, plant modifications; system and building decontamination; RV segmentation; large component re...

ATRIUM™ 11 for BWR Fuel

ATRIUM™ 11 design fuel – in operation since 2012 – provides significantly lower fuel rod power levels for power uprate margins, operational flexib...

POWERGRID PRODUCT LISTINGS

EtherMate® Industrial Ethernet - IO Modules

LioN-M ProfiNet device with 16 digital I/O channels, channels can be used universally as inputs or outputs, M12 socket, ro...

OFL280 FlexTester - Handheld OTDR

AFL's OFL280 FlexTester offers an unmatched combination of fiber test functions, ease-of-use, portability, and value.

ADSS Mini-Span® Fiber Optic Cable

AFL Mini-Span® All-Dielectric Self-Supporting (ADSS) cable is designed for outside plant aerial and duct applications in l...

TRM® 2.0 - Test Results Manager PC Analysis and Reporting

Test Results Manager 2.0 (TRM® 2.0) is an all-in-one analysis, viewer and reporting tool designed for use with NOYES fiber...

POWERGRID International

May 2015
Volume 20, Issue 5
1505pg_C1

ELECTRIC LIGHT & POWER

April 2015
Volume 93, Issue 2
1503ELP_C1