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PJM©2015
DER Participation in the PJM Wholesale Power Markets
Mid-Atlantic Renewable Energy Association
Susan CovinoSenior Consultant, Emerging MarketsMarch 31, 2015
PJM©20152
PJM as Part of the Eastern Interconnection
KEY STATISTICS
Member companies 900+
Millions of people served 61
Peak load in megawatts 165,492
MWs of generating capacity 183,604
Miles of transmission lines 62,556
2013 GWh of annual energy 791,089
Generation sources 1,376
Square miles of territory 243,417
States served 13 + DC
KEY STATISTICS
Member companies 900+
Millions of people served 61
Peak load in megawatts 165,492
MWs of generating capacity 183,604
Miles of transmission lines 62,556
2013 GWh of annual energy 791,089
Generation sources 1,376
Square miles of territory 243,417
States served 13 + DC21% of U.S. GDP produced in PJM
As of 4/1/2014
PJM©20153
PJM's PrioritiesReliability, Market Operations and Regional Planning
PJM©20154
Current Demand Response Participation
www.pjm.com
• DR Capacity – 2017/2018 Delivery Year = 10,975 MW
• Typical Economic Energy DR in market = ~50 MW
• DR Synchronous reserve capability ~ 320 MW, typical amount in market ~65 MW
• DR Regulation capability ~ 10 MW, typical amount in market ~ 3 MW
PJM©20155
Specialize in DR/EE services and do not supply the energy needs of their customers
Who Offers Demand Response into PJM’s Markets Today?
www.pjm.com
Some retail suppliers provide DR/EE services to their customers
CompetitiveRetail
Suppliers
Curtailment Service
Providers
Retail Choice States
•Utility DR/EE programs offered to SOS/BGS/POLR customers
•Utility DR/EE programs offered to any customers
Vertically Integrated States
•Utility DR/EE programs offered to the utilities customers
Utilities
PJM©20156
Registered Demand Response by State Delivery Year 2014/15
www.pjm.com
• LSE category = DR offered by utilities/Electric Distribution Companies (or their agents) and competitive retail electric suppliers• CSP category = DR offered by entities specializing in demand response and do not serve energy needs of customers
PJM©20157
Demand Response RegistrationsBusiness Segments in 2014/15
www.pjm.com
PJM©20158
Demand Response RegistrationsReduction Methods in 2014/15
www.pjm.com
PJM©20159
Demand Response Revenue by Year by Wholesale Service
*Capacity Net Revenue inclusive of Capacity Credits and Charges
PJM©201510
Price Responsive Demand Implemented by PJM in 2011 & 2012
• New option for wholesale participation by load reduction capability• Market rules require:
– Metering capable of providing hourly interval usage values
– Dynamic retail rates that are triggered by nodal Locational Marginal Prices in the PJM energy market
– Automated response (and supervisory control for capacity market participants that can override automated controls
www.pjm.com
PJM©201511
Today’s Economic Dispatch of Supply Resources
MW
www.pjm.com
PJM©201512
Dispatch Incorporating Price Responsive Demand
Dispatch $85 resourcesDispatch $90 resources
Load Curve
$88 Price-Responsive Demand
Same area of detail
No dispatch of additional resources due to demand response at indicated price level
Load Curve without PRD
www.pjm.com
PJM©201513
Distributed Energy Resources – the Vision
www.pjm.com
Presentation in Irvine, CA, February 2015 by Sean P. Meyn of the Florida Institute for SustainableEnergy, Dept of Electrical & Computer Engineering, University of Florida
PJM©201514
Load Curve
Usage Value (kW)• Consumers decrease energy demand during
all hours of the day
• Consumers decrease demand during peak load times- may shift load to higher than baseline after
Monetary Value ($)
• Value in Energy Market (Money saved through decreased energy usage)
• Value in Capacity Market (Revenue in PJM capacity payments in RPM)
Energy Market • ~90% of Cash Flow • ~5% of Cash Flow
Capacity Market • ~10% of Cash Flow • ~95% of Cash Flow
Comprehensive Plan: EE & DR
Energy EfficiencyEnergy Efficiency Demand ResponseDemand Response
Used Average price, cleared MW in PECO for DR, EE $ value calculations
RPM eligible kW RPM eligible kW
Capture highest value from each to maximize returns under one, comprehensive energy plan