The PJM Interconnection is exploring a way to identify and process resources that can support reliability in the near term as it transitions to a reformed interconnection process and clears its new service requests, it said on Oct. 8.
Donnie Bielak, Director, Interconnection Planning, introduced the Reliability Resource Initiative at the Oct. 8 meeting of the Planning Committee.
PJM has expressed concern in recent years about having enough resources on the system to reliably serve electricity demand, as detailed in the February 2023 study, Energy Transition in PJM: Resource Retirements, Replacements & Risks. The study is part of an overarching PJM initiative, Ensuring a Reliable Energy Transition.
The following trends, in combination, are eroding PJM’s reserve margins and will present reliability challenges by the end of the decade if not addressed, it said.
They include:
- Significant load growth, including large data centers and EVs
- Accelerated generator retirements due to economics and environmental policies
- New resource additions slowing due to supply chain, permitting and financing issues
- Lower reliability value of resources in the interconnection queue as measured by Effective Load Carrying Capability
"The clearing prices in the capacity market for the 2025/2026 Delivery Year underscored these concerns, signaling the need for new generation," PJM said.
The Reliability Resource Initiative would create a one-time opportunity to accommodate resources that support near-term reliability by placing them into Transition Cycle #2 with an abbreviated application window. The new process is designed to have no impact on the milestone dates of Transition Cycle #2.
Additional details on Transition Cycle #2 are included in the Reliability Resource Initiative.
Projects would be assessed by their contribution to resource adequacy, with a focus on their reliability value; the date by which they could be in service; and their size in megawatts.
The number of projects accepted would be capped to minimize disruption to the Transition Cycle #2 timeline.
The process would need to be approved by the PJM Board of Managers and the Federal Energy Regulatory Commission. Due to the urgent need, this approval would be requested on an accelerated timeline with limited stakeholder engagement.
PJM is scheduling a special meeting of the Planning Committee Oct. 18 to provide a straw proposal and receive stakeholders’ feedback.
Notice of a filing likely would be announced at the Nov. 21 meeting of the Members Committee. Pending approval, PJM would open Transition Cycle #2 for submissions in the first quarter of 2025.
