Post: PJM Capacity Auction for 2024-25 delivery year opens

PJM Capacity Auction for 2024-25 delivery year opens

PJM’s capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by securing the appropriate amount of power supply resources needed to meet predicted energy demand on a three-year-forward basis.

But businesses in PJM that are participating in the capacity market could see another hit to their’ income statements as recent auctions have procured capacity at low prices, leaving many wondering what they could do to fill the revenue gap.

The Synchronized Reserve (SR) program offers a low-impact addition to the Capacity Performance product in PJM. The SR program can stack with Capacity Performance to make up the revenue lost in the past two years’ downturn in revenue.

PJM’s Synchronized Reserve Market is an ancillary services program that supports the electric grid during unexpected system disruptions that only last for a short period of time, such as unplanned generator outages or rapid spikes in energy demand.

These sudden disruptions to the grid require participating sites reduce their demand from the grid within ten minutes of being notified. However, an average event duration of 7 minutes occurs 10 – 15 times annually with 10 minutes notice, with negligible impact for most industrial sites.

With GridBeyond systems integration and automation, bid parameters and load shed protocol can be customized to avoid any impacts on production.

At GridBeyond we believe businesses should look at energy technologies which can increase their operational resilience, secure supply and safeguard against energy prices during volatility. Technologies like GridBeyond’s AI-powered platform can automate a pre-agreed demand management plan and allow you to actively manage your power demand and costs, hassle-free.

Call us before you make a decision on continued participation in the capacity market! We can show you how to optimize your participation across the capacity, ancillary services and traded markets helping you take your revenues further.

Get in touch and we can show you that there is a better way.

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PJM’s latest Capacity Performance results:<br>What do they mean?

The electricity landscape is changing, which is significantly increasing costs and risks for businesses. In addition, revenues available from the capacity market are plummeting and businesses are set to see a direct hit to their income statements as a result. If you are wondering what you could do to fill the revenue gap, the good news is that there is a solution… if you have the right technology and solutions partner.

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