Delayed auction helped produce a cost range of $50/MW per day for most of the PJM footprint. The auction witnessed a rise in cleared capacity for generation of solar and wind. PJM interconnection has explained the renewables, nuclear, and novel natural gas generators to have witnessed the most substantial rise in cleared capacity. The inclusion of these components was done as a part of the annual capacity auction of the regional grid operator.
However, the largest decrease seen by PJM auction was for the coal units. This year’s auction has acquired 144,477 MW resources for a duration of June 01, 2022, through May 31, 2023 with a total cost of $3.9 billion. The $50/MW-day procured during this year’s auction was observed to be a significant decline in price as compared to the $140/MW-day during the most recent auction in 2018.
The grid operator stated a surge in wind and solar capacity with the all-inclusive value of 1,728 MW of wind clearance in the auction. This value has increased by 312 MW over the last PJM capacity auction. Whereas, the solar capacity value escalated by 942 MW from the last auction providing a clearance value of 1512 MW.
The total of these capacity values constitutes the capability of resources to offer as much as 11,761 MW for the PJM system. The PJM capacity auction, also known as the Base Residual Auction acquires power supply resources prior to the year of delivery, meeting the electricity requirements in the PJM service area.