Full Title: Scaling Clean: Assessing Market Options for Clean Energy and Capacity in PJM
Author(s): Grant Glazer, Katie Siegner, Chaz Teplin, Sarah Toth
Publisher(s): Rocky Mountain Institute (RMI)
Publication Date: March 11, 2022
Full Text: Download Resource
Spurred by state decarbonization policy, strong customer demand, and rapidly improving technology, carbon-free energy is playing a growing role in PJM, the United States’ largest wholesale electricity market. However, the pace of PJM’s energy transition is much too slow to avoid the worst impacts of climate change. To accelerate and sustain decarbonization while retaining reliability and affordability, PJM will need to better incorporate the capabilities and services of carbon-free resources in its markets.
Through the Resource Adequacy Senior Task Force (RASTF), PJM stakeholders are considering significant changes to the RTO’s capacity market rules, including the creation of a voluntary clean energy market. In this report, we review two clean energy market designs under consideration (the Forward Clean Energy Market and Integrated Clean Capacity Market), share analysis that clarifies the opportunities that clean energy markets provide, and make recommendations to PJM and its stakeholders as they consider next steps.