The purpose of the forum is to explore how the PJM capacity market is achieving the objective of ensuring resource adequacy at just and reasonable rates. The forum will solicit varied perspectives on both the current state of that PJM capacity market and potential improvements.Â
Capacity market reforms need to incorporate design concepts that support the acquisition of specific grid services capacity commitments, e.g., up ramping, baseload energy, flexible balancing services, etc. on an hourly basis in order to properly determine actual generator capacity available from solar resources as their capacity capabilities vary, by hour, seasonally. All grid resources should submit capacity supply offers that identify specific grid services needed for reliability for each hour over a defined commitment period. The capacity offer for a solar resource contains a different "hourly supply curve" in June as compared to December, in New England, and this impacts the amount of baseload services, flexible balancing services and reserve services that will be needed to maintain reliable operations as the seasons, and energy supply curve, changes.
REA submitted the "Always on Capacity Exchange" (AOCE) capacity market reform proposal to NEPOOL for consideration.