North America
June 27, 2022
Power & Utilities | Wholesale Markets
Visual Primer Series
Visual Primer: PJM’s Capacity Auction Yields Lower Prices, Reflects Growth in Carbon-Free Resources
Cleared nuclear and solar capacity surged while capacity prices dropped by 32 percent reflecting rule changes including a less restrictive minimum offer price rule.
PJM Interconnection LLC’s capacity market auction for the 2023-2024 delivery year cleared at $34.13 per megawatt-day (MW-day), which is nearly 32 percent lower compared to the 2021 auction and the lowest in almost a decade. The auction results reflect a low-carbon resource mix, with a growth of more than 5,000 cleared megawatts of carbon-free resources, according to the grid operator, which operates across 13 states and the District of Columbia.
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