The Federal Energy Regulatory Commission has approved a PJM Interconnection proposal that improves dispatch and accreditation of demand response resources in order to enhance grid reliability and resource adequacy.
As peak electricity demand increases and new generation takes time to come online, demand response resources are increasingly important to help PJM maintain adequate supply resources to serve electricity demand, or load.
The May 5 FERC order broadens the window for DR participation from a limited set of hours during summer and winter to around the clock throughout the year.
The PJM proposal also improves PJM’s accounting of winter peak load to refine the estimation of DR capability. The order will also broaden PJM’s existing DR availability window, from 10 a.m. to 10 p.m. in summer and 6 a.m. to 9 p.m. in winter, to 24 hours a day, it said.
Together, these enhancements allow for expanded and more accurate DR participation as capacity resources, beginning with the 2027/2028 Delivery Year.
PJM has about 8 GW of DR resources and set a new winter peak load in February at about 154 GW. By 2030, PJM forecasts its peak load will reach about 186 GW, a 32 GW surge largely made up of data center needs.
These reforms will help incentivize DR resource participation in PJM, the grid operator said.
