Last year PJM Interconnection (PJM) published its long-awaited capacity market auction schedule confirming the Base Residual Auction (BRA) for delivery year 2022-23 will be held in May 2021, with the 2023/24 auction following in December 2021. The BRA will run from May 19, to May 25, with the results posted on June 2.
Traditionally held annually in May to procure resources three years ahead, PJM has not conducted a capacity auction since 2018 after Federal Energy Regulatory Commission (FERC) determined that the market rules were unjust and unreasonable due to their treatment of state-subsidized clean energy resources. FERC subsequently ordered PJM to revise its market seller offer cap to prevent sellers from exercising market power. Given the auction is open to generation, DSR and energy efficiency resources, this time around GridBeyond expects the auction to be oversubscribed. This is particularly important for businesses looking to monetize their flexible load as historically DSR contracts account for a relatively small amount of capacity secured via the BRA. For the 2019/20 delivery year, for example, PJM secured 167GW of capacity of which just 10.3GW was DSR.
The solution? By optimizing your participation across the BRA, ancillary services and traded markets you could take your revenues from $50k to $200k. How? with an AI platform that does all the hard work for you.
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Revised BRA Capacity Market Schedule
- 2022/2023 May-21
- 2023/2024 Dec. 2021
- 2024/2025 Jun-22
- 2025/2026 Jan. 2023
- 2026/2027 Jul-23
- 2027/2028 May 2024 – Auction back to original schedule