April 23, 2025

PJM aims to shield renewables from capacity market penalties arising from diminishing reliability benefits

The proposal would reduce capacity resource deficiency charges to 100% of a resource’s clearing price, shielding sellers from penalties due to lower calculated reliability benefits.

Capped Charges: PJM Interconnection LLC proposes capping deficiency charges for renewable generators to 100% of a resource's base residual auction clearing price, down from the current 120%. This change aims to protect renewable generators from penalties when capacity shortfalls result from recalculations of their contribution to system reliability, known as effective load carrying capability (ELCC). PJM requests that the changes ...

Details:

Filing Date: April 18, 2025

Docket Numbers:

ER25-2002

Short Summary:

PJM Interconnection LLC proposes capping deficiency charges for renewable generators to 100% of a resource’s base residual auction clearing price, down from the current 120%. This change aims to protect renewable generators from penalties when capacity shortfalls result from recalculations of their contribution to system reliability, known as effective load carrying capability (ELCC). PJM requests that the changes take effect starting in the 2026/2027 delivery year, according to the April 18 filing.

Impact Level:

Categories:

Policies & Rulemakings

Tags: Capacity Market, Effective Load Carrying Capability (ELCC)

Entities: PJM Interconnection

Markets: PJM Interconnection (PJM)

Regions: Mid-Atlantic & Midwest

States:

Regulators: FERC

Courts:

Documents:

Capacity Market Deficiency Charges – Tariff Amendment – Application for Approval