PJM’s annual capacity auction, also known as the Reliability Pricing Model Base Residual Auction, opened today, May 11, and will close on May 17, with results posted after 4 p.m. on Tuesday, May 24.
About 80 percent of the total requirement for resources is targeted for Capacity Performance resources in this auction. Next year’s auction for the 2020-2021 delivery year will require all resources to meet Capacity Performance standards.
The capacity market ensures long-term grid reliability by procuring the appropriate amount of power supply resources needed to meet predicted energy demand three years in the future. Under Capacity Performance, most generators will get “pay-for-performance” by reliably delivering power for electricity customers, especially during power system emergencies.
The planning parameters for the auction were posted on the PJM RPM website on Feb. 1. The Capacity Market page on pjm.com has additional information about the auctions. This is also where auction results will be posted.