Scaling Clean: Assessing Market Options for Clean Energy & Capacity in PJM

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Scaling Clean: Assessing Market Options for Clean Energy & Capacity in PJMThis report draws on discussions with PJM states, utilities

Scaling Clean: This report draws on original RMI analysis as well as extensive discussions with PJM states, utilities, customers, and clean energy developers.

Through the Resource Adequacy Senior Task Force , 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 , share analysis that clarifies the opportunities that clean energy markets provide, and make recommendations to PJM and its stakeholders as they consider next steps.

State carve-out policies have meaningful cost and emissions implications that should be considered together with their benefits. Scaling Clean: The chart above captures the results from one of our clean energy and capacity procurement simulations. It shows how capacity procurement outcomes change when clean energy resources’ capacity value is fully included in the market . In that scenario, more solar is added to the system, given its higher capacity value, and more of the marginal fossil resource is retired.

 

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