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Capacity News SMM

PJM Set To Hold Capacity Auction In June After Receiving Mixed FERC Decisions | Capacity News

Ethan Howland reports in Utility Dive that after receiving two key Federal Energy Regulatory Commission decisions, the PJM Interconnection plans to hold its next capacity auction in June. Our Scott Niemann, Managing Director & Principal, said the FERC-approved changes will likely put upward pressure on capacity prices in most parts of PJM. Driven by pending power plant retirements, prices in PJM’s Southwest MAAC zone could break higher than the overall regional transmission organization.

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Top ESAI Power Blog Posts for 2023

It has been a banner year for news in the wholesale power space and our top five blog posts reflect that with heavy concentration of capacity and renewable energy news in NYISO, MISO and the PJM Interconnection.

PJM Auction Track Record

PJM Capacity Auction Track Record 2016 – 2023

Power Generator owners and their investors are placing big bets (often in the hundreds of millions of dollars) in the PJM, MISO, ISO-NE and NYISO Capacity Markets. As Mark Christie, FERC Commissioner, put it in March, 2023: “Capacity Markets are characterized by such hopeless complexity and impenetrable opacity that they represent the example of a game that only insiders can play and win.”

Emissions News

Will Virginia leave RGGI? | Emissions News

At the end of July, regulations were published to withdraw Virginia from the Regional Greenhouse Gas Initiative (RGGI). The regulation, which was to take effect on August 30, 2023, requires that Virginia withdraw from the RGGI program at the end of this year. As expected, a legal challenge was filed immediately by the SELC.

Generation Asset Monitor

PJM Interconnection Process Update | Generation Asset Monitor Blog

Earlier this month, PJM issued an update on its new process for studying New Service Requests from generators seeking Interconnection Service Agreements (ISAs) or Wholesale Market Participant Agreements (WMPAs). This new process was approved by the Federal Energy Regulatory Commission (FERC) on November 29, 2022, and was implemented to address the significant backlog of generation projects with queue positions awaiting ISAs or WMPAs.

Renewables Watch Blog

FERC Approved PJM Queue Reform Proposal | Renewables Watch Blog

FERC Approved PJM’s Queue Reform Proposal. These reforms are intended to address the significant backlog of generation projects with queue positions awaiting ISAs or WMPAs. With this approval, PJM will process New Service Requests under a “first-ready, first-served” approach going forward rather than its current “first-come, first-served” approach.

Emissions News

EPA Proposes Tightening Fine Particulate Matter Standard, Potentially Affecting Coal Power Plants | Emissions News

Ethan Howland reports in Utility Dive that in a move that could add to regulatory requirements for coal-fired power plants, the Environmental Protection Agency on Friday proposed tightening the primary annual air quality standard for fine particulate matter, called PM 2.5, to a range of 9 micrograms per cubic meter to 10 µg/m3 from 12 µg/m3. Coal plants owners in nonattaintment areas for a revised standard will have to meet requirements outlined in any approved state plans for meeting the federal PM 2.5 limit, according to Julia Criscuolo, ESAI Power manager of renewables and emissions.

Capacity Watch Blog

PJM BRA 2024/25 Capacity Price Forecast | Capacity Watch Blog

For Energy Investors and Generation Owners investing and trading in PJM, it’s vital to have an in-depth market model with deep analysis of the market fundamentals, the latest regulatory updates, and insight into the rule changes and planning parameters that impact PJM BRA clearing prices moving forward. Surface level analysis is not enough when it comes to making investment decisions in the PJM Capacity Market. The PJM BRA for 2024/25 Delivery year is set to begin December 7th, 2022

Renewables Watch Blog

Renewable Energy PPA Trends & Outlook | Renewables Watch Blog

Renewable generation in PJM has been increasing over the past few years and will play a larger role in the market’s resource mix going forward. Coal-fired capacity is retiring at a rapid pace, and the interconnection queue is heavily comprised of renewable capacity. There is approximately 133 GW of utility-scale solar, wind, and offshore wind projects with queue positions in various stages of development.

Renewables Watch Blog

Renewable Energy Development Challenges | Renewables Watch Blog

Renewable generation in PJM has been increasing over the past few years and will play a larger role in the market’s resource mix going forward. Coal-fired capacity is retiring at a rapid pace, and the interconnection queue is heavily comprised of renewable capacity. There is approximately 133 GW of utility-scale solar, wind, and offshore wind projects with queue positions in various stages of development.