Evolution of conventional, renewable and alternative resources in PJM market operations

Abstract

The current evolution of supply resources on US power grid is focused on renewable resources and cleaner, low emission, power resources. This trend in evolution of supply resources has lead to a reduction in operating flexibility for legacy resources which are being replaced by resources with significantly different characteristics and capabilities. The current class of intermittent resources in the US such as wind and solar power are characterized by limited ramping and control capabilities. Legacy thermal resources are becoming more operationally constrained due to emission restrictions imposed by environmental regulations. On the other hand, the development of smart grid technologies, breakthroughs in storage technologies, micro-grid applications, distributed supply resources and smart metering infrastructure have the potential to make power transmission, distribution and consumption more flexible than it has been in the past. Moreover, the current efforts to align wholesale market prices with retail rates in the US will develop the capability to deploy real-time retail pricing allowing for more efficient use of demand control technology in response to system supply conditions. This paper will discuss these trends and will discuss the mechanisms by which both system and market operators can manage and leverage these changes to maintain the reliability of the bulk electric power system.