Solar and wind gain, prices drop as PJM auction secures future capacity – pv magazine USA
The delayed auction produced a price of $ 50 / MW-day for much of PJM’s footprint and saw an increase in the capacity allowed for solar and wind generation.
PJM Interconnection said that producers of renewables, nuclear and natural gas saw the largest increase in capacity allowed under the regional grid operator’s annual capacity auctions. Coal units saw the biggest decline.
This year’s auction provided 144,477 MW of resources for the period June 1, 2022 to May 31, 2023, at a total cost of $ 3.9 billion. The auction produced a price of $ 50 / MW-day for much of the PJM footprint, up from $ 140 / MW-day in the last auction in 2018. Prices were higher in some areas due to transmission limits.
Grid operator PJM said solar and wind resources “have dramatically increased” their contribution to capacity. A total of 1,728 MW of wind power was released during the auction, which represents an increase of 312 MW from the previous capacity auction. Solar increased by 942 MW from the previous capacity auction, with a compensation of 1,512 MW.
These capacity values represent a total capacity of these resources to deliver up to 11,761 MW (nameplate) in the PJM system.
The PJM capacity auction, known as the Base Residual Auction, provides power resources before the year of delivery to meet the power needs of the PJM service area, which includes all or part of 13 states and the District of Columbia. , and includes approximately 65 million customers.
Auctions usually take place three years before the year of delivery. The 2022/2023 auction was originally scheduled for May 2019, but was postponed as the Federal Energy Regulatory Commission reviewed the new capacity market rules, in particular the Minimum Offer Price (MOPR) rule.
The total capacity acquired during the auction represents a reserve margin of 19.9%.
Announcing the results of the capacity auctions, PJM said the newer and more efficient combined cycle natural gas plants have seen a sharp increase in auctions this year, adding more than 3,414 MW of capacity. Energy efficiency programs increased 1,979 MW, or 70%, while demand response, at 8,812 MW, was down 2,314 MW, or 21%, from previous auctions.
Nuclear producers have authorized an additional 4,460 MW compared to the last auction. Coal generators, meanwhile, released 8,175 megawatts less.
The total capacity acquired in the auction represents a reserve margin of 19.9%, against a required reserve of 14.5% for the delivery year 2022/2023.
PJM said that in five regions – ComEd, Duke Energy Ohio and Kentucky, the Mid-Atlantic Area Council (MAAC) region, the Eastern MAAC region, and Baltimore Gas & Electric (BGE) – prices for the capacity were higher than PJM’s overall price.
For ComEd, the price was $ 68.96 / MW-day; for Duke Energy Ohio & Kentucky, the price was $ 71.69 / MW-day; for MAAC, the price was $ 95.79 / MW-day; for East MAAC, the price was $ 97.86 / MW-day; and for BGE, the price was $ 126.50 / MW-day.
This content is protected by copyright and cannot be reused. If you would like to cooperate with us and would like to reuse some of our content, please contact: [email protected]azine.com.