The Clean Attribute Procurement Senior Task Force held its inaugural meeting June 3 as the dedicated forum to discuss mechanisms for procuring clean resource attributes initiated by PJM’s Resource Adequacy Senior Task Force.
The Clean Attribute Procurement Senior Task Force, or CAPSTF, aims to integrate state policy and energy-buyer preferences for carbon-free resources into PJM markets to improve efficiency, drive innovation and accelerate grid decarbonization. The CAPSTF will coordinate a comprehensive discussion between PJM stakeholders, PJM staff and the Organization of PJM States, Inc. (OPSI).
PJM Facilitates Market Design Discussion
“The task ahead is to design a voluntary market where a clean attribute product or multiple products may be procured for the mutual benefit of all market participants,” said Walter Graf, PJM Senior Director, Economics – Market Services.
The procurement of clean resource attributes was an issue identified by stakeholders in recent capacity market reform workshops, as well as by the PJM Board of Managers in 2021. In the new task force, PJM will facilitate education and discussion amongst the stakeholders in an attempt to agree upon a voluntary market design. The task force will also coordinate with OPSI, which has been developing proposals to explore such procurement via its Competitive Policy Achievement Staff Working Group.
CAPSTF Facilitator Scott Baker, PJM Lead Business Solution Analyst– Applied Innovation, began the first meeting with review of eight key work activities:
- Education about clean resource attributes, including varying definitions across jurisdictions, markets and procurement mechanisms
- Discussion of objectives of a market construct that would enable voluntary procurement of clean resource attributes
- Discussion of options for product definitions in such a market
- Development of market-design options to enable detailed analysis, including implications for grid reliability, cost, emissions and political jurisdictions
- Determination of questions to be explored through qualitative and quantitative analysis
- Determination of analytical approaches and subsequent studies
- Selection of one or more market design solutions for further development
- Design and development of market rules for implementation
Education About Voluntary Market Mechanisms
Since 2020, OPSI has studied aspects of voluntary participation in markets to enable procurement of clean energy resources per state policies. In addition to an OPSI presentation about that work, stakeholders in attendance also heard a PJM presentation about the history and scope of PJM Environmental Information Systems, Inc. (PJM EIS), a PJM subsidiary that administers the Generation Attribute Tracking System (GATS), a platform for tracking and trading Renewable Energy Certificates in the U.S.
As a reflection of growing state decarbonization policy in recent years, their resulting Regional Portfolio Standards in aggregate would require approximately 33% of electricity to be sourced from renewable resources by 2050 within PJM, said PJM EIS President Ken Schuyler. Those in attendance also heard from Graf, who discussed options for defining a potential clean attribute product.
CAPSTF work continues in monthly task force meetings with results to be advanced to the Markets & Reliability Committee in mid-2023. The task force next meets on June 28.