DER Participation in the PJM Wholesale Power Markets
Mid-Atlantic Renewable Energy Association
Susan Covino
Senior Consultant, Emerging Markets
March 31, 2015
PJM©2015
PJM as Part of the Eastern Interconnection
KEY STATISTICS
Member companies
Millions of people served
61
Peak load in megawatts
165,492
MWs of generating capacity
183,604
Miles of transmission lines
62,556
2013 GWh of annual energy
Generation sources
21% of U.S. GDP produced in
PJM
900+
791,089
1,376
Square miles of territory
243,417
States served
13 + DC
As of 4/1/2014
2
PJM©2015
PJM's Priorities
Reliability, Market Operations and Regional Planning
3
PJM©2015
Current Demand Response Participation
• DR Capacity – 2017/2018
Delivery Year = 10,975 MW
• Typical Economic Energy
DR in market = ~50 MW
• DR Synchronous reserve
capability ~ 320 MW, typical
amount in market ~65 MW
• DR Regulation capability ~
10 MW, typical amount in
market ~ 3 MW
www.pjm.com
4
PJM©2015
Who Offers Demand Response into PJM’s Markets Today?
Curtailment
Service
Providers
Competitive
Retail
Suppliers
Specialize in DR/EE services and do not supply
the energy needs of their customers
Some retail suppliers provide DR/EE services to
their customers
Retail Choice States
• Utility DR/EE programs offered to SOS/BGS/POLR
customers
Utilities
• Utility DR/EE programs offered to any customers
Vertically Integrated States
• Utility DR/EE programs offered to the utilities
customers
www.pjm.com
5
PJM©2015
Registered Demand Response by State
Delivery Year 2014/15
•
•
www.pjm.com
LSE category = DR offered by utilities/Electric Distribution Companies (or their agents) and competitive retail electric suppliers
CSP category = DR offered by entities specializing in demand response and do not serve energy needs of customers
6
PJM©2015
Demand Response Registrations
Business Segments in 2014/15
www.pjm.com
7
PJM©2015
Demand Response Registrations
Reduction Methods in 2014/15
www.pjm.com
8
PJM©2015
Demand Response Revenue by Year by Wholesale Service
*Capacity Net Revenue inclusive of Capacity Credits and Charges
9
PJM©2015
Price Responsive Demand Implemented by PJM in 2011 & 2012
• New option for wholesale participation by load reduction capability
• Market rules require:
– Metering capable of providing hourly interval usage values
– Dynamic retail rates that are triggered by nodal Locational
Marginal Prices in the PJM energy market
– Automated response (and supervisory control for capacity market
participants that can override automated controls
www.pjm.com
10
PJM©2015
MW
Today’s Economic Dispatch of Supply Resources
www.pjm.com
11
PJM©2015
Dispatch Incorporating Price Responsive Demand
Load Curve
without PRD
Load Curve
Same area of detail
Dispatch $85 resources
$88 Price-Responsive
Demand
Dispatch $90 resources
No dispatch of additional resources due to
demand response at indicated price level
www.pjm.com
12
PJM©2015
Distributed Energy Resources – the Vision
Presentation in Irvine, CA, February 2015 by Sean P. Meyn of the Florida Institute for Sustainable
Energy, Dept of Electrical & Computer Engineering, University of Florida
www.pjm.com
13
PJM©2015
Comprehensive Plan: EE & DR
Load Curve
RPM eligible kW
Baseline
Usage Value (kW)
w/ EE
RPM eligible kW
Baseline
w/ DR
• Consumers decrease energy demand during
all hours of the day
• Consumers decrease demand during peak
load times- may shift load to higher than
baseline after
• Value in Energy Market (Money saved through
• Value in Capacity Market (Revenue in PJM
decreased energy usage)
Monetary
Value ($)
Demand Response
Energy Usage
Energy Usage
Energy Efficiency
capacity payments in RPM)
Energy Market
• ~90% of Cash Flow
• ~5% of Cash Flow
Capacity Market
• ~10% of Cash Flow
• ~95% of Cash Flow
Capture highest value from each to maximize returns under one, comprehensive
energy plan
Used Average price, cleared MW in PECO for DR, EE $ value calculations
14
PJM©2015