I was surprised this hasn’t been posted yet. The auction results for 25/26 came in significantly higher than I think anyone anticipated. This will have a massive impact on utility price to compares and retailer prices, especially as we get closer to the start of the new capacity year. With the 26/27 auction coming up December just wondered if anyone had any thoughts on the matter. Are high capacity prices here to stay in PJM? Will this really incentivize new generation, especially dispatchable?
https://www.utilitydive.com/news/pjm-interconnection-capacity-auction-vistra-constellation/722872/
by mhershey84
2 comments
sure would be nice if those wind farms off nj hadn’t been dicked around for years
If PJM (or state politicians, more likely) have the will, they can save a few – $10 billion dollars in the next auction:
* There are two coal plants in MD that are being kept running for reliability but but required to offer into the capacity market. Fix that and there’s 2.2GW.
* PJM’s import rules are straight up protectionist. Neighboring RTOs aren’t exactly swimming in excess capacity either, but there’s some, and it should be allowed to sell into PJM.
* DR was down rated by about 2 GW because the times PJM requires DR to curtail doesn’t match all the gours. That’s it. They can recover 2GW of lost capacity with the stroke of a pen by changing what time they’re allowed to call DR.
* There was about 1.4GW of winter wind capacity left uncleared because they won’t clear winter resources unless there’s a matching summer one. Fix that silly rule and you probably get another 500MW of capacity.