Platts Podcast: Ott Goes in Depth on Market Design Evolution

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PJM President and CEO Andy Ott joined the Platts Commodity Spotlight podcast Wednesday to discuss how best to achieve balance in energy and capacity market designs.

Ott outlined recent initiatives on reserve pricing, as well as renewables entering the energy market and plans to integrate those renewables into the grid.

“Ideally, the markets incent – and are incenting for the large part – generators and demand response and alternative technologies to do the right thing for reliability,” Ott said.

Ott also talked about incorporating fuel security and resource flexibility into PJM’s markets and how alternative technologies would be able to compete.

“Alternative tech like battery storage, like microgrids, they can come and play the way demand response did in the capacity market,” Ott said. “They can say, ‘Maybe [we] are a cheaper solution to provide these grid solutions than a generator.’”

Listen to the full discussion on the S&P Global Platts website.