Regulation prices break $27,000/MW for some 5-minute intervals today. Batteries offering regulation today are making big money. Hopefully this incentivizes more battery buildout in PJM
PJM in a Maximum Generation Emergency Alert and Hot Weather Alert. High temperatures spiking cooling demand coinciding with solar ramp down in the evening leading to extremely high prices as conventional generators get picked up to meet the net load.
source: edenenergy.ai
"Major PJM cities are forecast in the mid-90s to near 100°F: Washington DC near 100°F, Newark near 100°F, Philadelphia near 98°F, Richmond near 97°F, Pittsburgh near 98°F, Columbus near 96°F, and Chicago near 96°F."
This evening, prices reach past $800/MW as solar ramps down and other dispatchable sources (natural gas, coal) ramp up to meet the cooling demand in major PJM cities.
Lots of emergency procedures today as well, including Hot Weather Alert and Maximum Generation Alert across the RTO.
Source: Power Market Insights
"Chicago was in the mid-90s, Philadelphia and Washington DC were near 90°F, Columbus was near the upper-80s, and Pittsburgh was in the mid-80s. These conditions sustained broad cooling demand across western, Mid-Atlantic, and eastern PJM, contributing to the 144 GW peak.
The price spike happened in the evening. Actual load ran more than 5 GW above forecast, solar output dropped sharply, wind fell below forecast, and 30-minute reserves declined."
Solar keeps prices in PJM low during the sunny hours but we still need batteries for the solar ramp down where prices are quickly rising to $65/MWh this early evening
When solar is strong and wind outperforms, we see subdued prices but that can quickly change when renewables underperforms and more expensive dispatchable generation fills in to meet demand. Speaks to how important renewables are to lower prices in the market and how sensitive the market is to any misses in renewable energy forecasts.
Hi all. A few folks over at grids_ops subreddit encouraged me to build a tool that summarizes PJM power market trends (e.g. load, renewable generation, etc.). It took me a month, but I finally built it so I'm excited to share with ya'll. It's a free tool so I hope you enjoy it!
tool: edenenergy.ai
Right now, I have it set to update data and insights every hour for today and a daily recap for yesterday. I would love feedback from people who follow these markets closely!
