PJM has announced a schedule for its next five annual capacity auctions following an order issued by the Federal Energy Regulatory Commission on Nov. 12.
PJM has scheduled the next capacity auction, for the 2022/2023 Delivery Year, to open May 19, 2021, and close May 25, 2021. PJM will post auction results after 4 p.m. on June 2.
Subsequent auctions will be held on an accelerated basis – approximately every six months – through 2024, so that the regular annual auction cadence can resume. The proposed schedule lays out the following timeline, which could vary slightly once the detailed pre-auction activity schedule is published:
- The 2023/2024 Delivery Year auction will take place in December 2021
- The 2024/2025 Delivery Year auction will take place in June 2022
- The 2025/2026 Delivery Year auction will take place in January 2023
- The 2026/2027 Delivery Year auction will take place in July 2023
Thereafter, the traditional annual timing of auctions takes place with the 2027/2028 Delivery Year auction scheduled for May 2024.
The 2022/2023 capacity auction, or Base Residual Auction, was originally scheduled to be held in May 2019, but was postponed pending FERC’s approval of new capacity market Minimum Offer Price Rules (MOPR). PJM cleared the final requirement to reestablish the auction schedule with FERC’s Nov. 12 order. In that order, FERC approved PJM’s treatment of the Energy Market and ancillary services market revenue offset, which is used, among other things, to establish the minimum offer price for resources with a state subsidy in the capacity auction.
PJM’s capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by securing the appropriate amount of power supply resources needed to meet predicted energy demand on a three-year-forward basis.
In the months leading up to the resumption of each capacity auction, PJM will strive to administer pre-auction activities in a timely and effective manner. Details for these activities are included in the 2022/2023 proposed Base Residual Auction Schedule. The final detailed pre-auction activity schedule for all auctions will be posted in the standard location on the PJM capacity market webpage.
Learn more about the capacity market at the PJM Learning Center.