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Dive Brief:
The PJM Interconnection on Wednesday proposed three broad frameworks for reforming its markets to help ensure its 13-state region has adequate power supplies to meet growing demand.
The options are: stabilizing PJM’s existing capacity market; rationing grid reliability among customer classes or regions; and shifting to a market focused on energy and ancillary services and away from the capacity market, PJM said in a white paper, Powering Reliability Through Market Design.
PJM will lead stakeholder discussions on the options through 2026, with the goal of developing enough of a regional consensus to move forward with market design changes, according to the white paper. “The current situation is not tenable,” PJM President and CEO David Mills said in the report. “The region has years, not decades, to make these choices deliberately.”
