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

AEP-PSO asks for rate hike, cites EPA costs

07/02/2015

If approved, rate hike would add more than $14 to monthly bills

construction Georgia Power Vogtle Unit 4

Vogtle Unit 4 completes major construction milestone

07/01/2015 Georgia Power recently announced a major milestone in the construction of Vogtle Unit 4--the placement of the CA04 module ...
distribution Navigant Research

Annual DC Distribution Network Implementation Revenue Could Reach $5.1 Billion

07/01/2015 A new report from Navigant Research examines the opportunity for direct current (DC) distribution networks in four key mar...
information management AVEVA Frost & Sullivan

Frost & Sullivan lauds AVEVA’s customer-centric growth strategy in the engineering information management solution market

07/01/2015 AVEVA has consistently and effectively balanced short-term performance needs with the company’s long-term vision and aspir...
wind farms Alstom Eletrosul Brazil

Alstom signs turnkey contract with Eletrosul to integrate wind farms in southern Brazil

07/01/2015 Alstom has been awarded a turnkey contract worth approximately €100 million from Eletrosul Centrais Electricas S/A (Eletro...
solar NRG Home Solar Solar Decathlon

NRG Home Solar Partners with Solar Decathlon Team

06/30/2015 NRG Home Solar, a division of NRG Energy Inc. (NYSE: NRG) and one of the country’s leading residential solar companies, ha...
non-hydro renewables AWEA

AWEA applauds White House on 20 percent non-hydro renewables by 2030

06/30/2015 Tom Kiernan, CEO of the American Wind Energy Association (AWEA), released the following statement today regarding the Whit...
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

Decontamination & Decommissioning

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

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...

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