Full Title: Near-Term Reserves Tight in Revamped PJM Market
Author(s): Tanya Peevey
Publisher(s): S&P Global
Publication Date: October 2, 2024
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Description (excerpt):
While the record-high clearing price in PJM Interconnection LLC’s 2025/2026 Base Residual Auction this past June signals the need for more reliable capacity, it may also trigger a wave of efficient and low-cost generation that pushes down wholesale electricity prices in PJM. The elevated clearing prices followed market changes PJM made to enhance market efficiency and reliability, aiming to promote competition as existing generators retire and recent extreme weather events have revealed resource adequacy deficiencies. Consequently, PJM’s near-term reserve margins are forecast at 6.8% in 2025.
Gain strategic insights into PJM supply and demand forecast, projections on generation mix and the shift in the margins of gas and renewable capacity from 2024-2040.