PJM auction brings good news, bad news for Ohio electric customers

Credit: Joe Navratil/Creative Commons

ST. PAUL, MN — “Most of Ohio will pay less to make sure adequate electric capacity is available three years from now. But critics say that changes in the grid operator’s auction rules discriminate against certain types of clean energy and will lead to overpayments.

…The good news of a price drop for most of Ohio and the PJM area was tempered by lower commitments for renewable energy and demand response resources.

This year was the first year that the auction implemented controversial rules that require generation resources to be available year-round. ‘The annual-only requirement prefers baseload fuel-burning resources, including coal and nuclear as well as gas, over cheaper resources like renewables and demand response,’ said Jennifer Chen of the Natural Resources Defense Council.

Only 125.3 MW of solar energy were cleared in this year’s auction for 2020/2021 — a drop of 63 percent from last year’s results for 2019/2020. Wind energy procurements fell 8 percent from last year, down to 887.7 MW.”

— Kathiann M. Kowalski, Midwest Energy News

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