PJM Interconnection to Implement Locational Reserve Procurement Mechanism
The power grid management organization PJM Interconnection is working with stakeholders to improve the reliability and efficiency of its power reserve markets, as a growing trend of data center loads poses significant challenges to capacity, energy, and reserve markets. According to Monitoring Analytics president Joe Bowring, clear and transparent data is crucial in evaluating reserve requirements, and any approach must avoid manipulating prices or shifting revenue between markets. PJM has proposed several options for locational reserve procurement, including system-wide and zonal procurement, in an effort to address the potential $2 billion to $3 billion impact on the energy market resulting from increasing data center loads without corresponding capacity.
