PJM Releases Initial Results of Renewable Energy Transition Study
VALLEY FORGE, PA — PJM Interconnection recently released the initial results of a multiphase, multiyear effort to study the potential impacts of an evolving resource mix, including the accelerating integration of renewable resources.
The “Energy Transition in PJM: Frameworks for Analysis” paper reflects PJM’s five-year strategy, which is built on three pillars – enabling state and federal decarbonization policies, planning for the grid of the future, and fostering innovation. This “living study” will help PJM identify gaps and opportunities in the current market construct and provide insights into the future of market design, transmission planning and reliable system operations.
“As the generation mix continues to rapidly evolve in PJM, we must be ready to maintain the reliable, cost-effective delivery of electricity at all times,” said PJM President and CEO Manu Asthana. “This study represents an important step in understanding how PJM can best work to facilitate the energy transition and make the grid of the future possible.”
In the study, PJM synthesized the diverse set of state policies within its footprint into three scenarios in which an increasing amount of energy is served by renewable generation on an annual basis (10%, 22% and 50%), up to 70% carbon-free generation when combined with nuclear generation. Currently, renewables represent approximately 6% of the annual energy, a total of over 40% carbon-free when combined with nuclear’s contribution to the energy mix in 2020.
BUSINESS
PJM Releases Initial Results of Renewable Energy Transition Study
December 23, 2021 – by MyChesCo
PJM Interconnection
VALLEY FORGE, PA — PJM Interconnection recently released the initial results of a multiphase, multiyear effort to study the potential impacts of an evolving resource mix, including the accelerating integration of renewable resources.
The “Energy Transition in PJM: Frameworks for Analysis” paper reflects PJM’s five-year strategy, which is built on three pillars – enabling state and federal decarbonization policies, planning for the grid of the future, and fostering innovation. This “living study” will help PJM identify gaps and opportunities in the current market construct and provide insights into the future of market design, transmission planning and reliable system operations.
“As the generation mix continues to rapidly evolve in PJM, we must be ready to maintain the reliable, cost-effective delivery of electricity at all times,” said PJM President and CEO Manu Asthana. “This study represents an important step in understanding how PJM can best work to facilitate the energy transition and make the grid of the future possible.”
In the study, PJM synthesized the diverse set of state policies within its footprint into three scenarios in which an increasing amount of energy is served by renewable generation on an annual basis (10%, 22% and 50%), up to 70% carbon-free generation when combined with nuclear generation. Currently, renewables represent approximately 6% of the annual energy, a total of over 40% carbon-free when combined with nuclear’s contribution to the energy mix in 2020.
READ: Pacer ETFs Resets January Series of Structured Outcome Strategy ETFs
The study’s initial findings suggest five key focus areas for PJM’s stakeholder community and delineate the subsequent phases of the study:
-Correctly calculating the capacity contribution of generators is essential: A system with increased variable resources will require new approaches to adequately assess the reliability value of each resource and the system overall.
-Flexibility becomes increasingly important with growing uncertainty: The study reaffirmed the need for operational flexibility to address the uncertainty of variable resources. Findings include 50% steeper net-load ramping periods, frequent dispatch of generators to their economic minimum, and lower capacity factors for thermal resources.
-Thermal generators provide essential reliability services today and an adequate supply will be needed until a substitute is deployed at scale: PJM and stakeholders must ensure that the market structure provides the right incentives to maintain these reliability services.
