Some readers may recall headlines last fall stating that the PJM Interconnection would stop accepting energy efficiency resources for its forward capacity auctions. Capacity auctions work in the following simplified process: Local distribution companies, aka utilities, determine peak load contributions at multiple levels of aggregation – e.g., zonal and network transmission. PJM aggregates those loads and adds reserve margins to ensure there will always be enough power to keep the grid energized at specified voltages and 60 Hz alternating current frequency. Capacity providers, including generators and demand side and load management aggregators, bid their resources into the market until the…
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