PJM - Renewables FAQs

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Renewables FAQs

Q1: How much renewable energy does PJM generate?

A1: PJM does not generate power, nor transmit or distribute it. PJM manages the high-voltage transmission grid, administers the wholesale power market and plans for connecting new generation. It has the overall responsibility for reliability. PJM provides open access and creates a level playing field for all forms of generation, including renewable resources.

In 2008, renewable generation provided roughly 4 percent of the total electricity used in the PJM region. (Hydroelectric power and pumped storage made up 1.7 percent).

Q2: How does PJM stack up against the other regional transmission organizations in the country in terms of renewable generation?

A2: “Other Renewables” in PJM were 8 percent of the renewable generation found in the other seven RTOs in the country which represent two-thirds of the country’s population.

Q3: How many states within PJM have renewable portfolio standards or requirements for renewable generation?

A3: Nine of the thirteen PJM states and D.C. have Renewable Portfolio Standards requirements. Three are not yet in effect. More information can be obtained from the RPS Map (PDF).

Q4: How much more renewable generation will be needed to satisfy the states’ requirements?

A4: States’ renewable portfolio standards, as currently effective, will require 26 million megawatt-hours (MWh) of renewable energy in 2009 and increase to 200 million MWh needed in 2025.

Q5: Do all of the states define renewable energy the same way?

A5: No. Each state recognizes some forms of generation as renewable and not others. Information on specific definitions in each state is available through their regulatory authority.

Q6: Are there more wind generating units producing power in PJM?

A6: There has been a large influx of proposed new wind generation with more than 44,000 megawatts of proposed projects in various stages of development. However, not all proposed projects go into service. Developers of any type of power plant can withdraw from the process at any point before their project is in-service and often do so for many reasons.

Q7: With the popularity of renewable generation, why does PJM still use generation from other sources, including coal, nuclear and natural gas-fired generation?

A7: Although PJM looks for ways to make the grid more accessible to all kinds of generation, it is not allowed to favor any type over another. To PJM, a megawatt of power is the same no matter how it’s produced.

To keep the lights on for the 51 million people in its region, PJM needs all of the power sources currently available. Renewable generation is growing, but there’s still not enough of it to significantly replace other ways of producing electricity.

Also, much renewable power, such as wind and solar, isn’t always available. Other forms of generation must be available to make up the difference when the wind doesn’t blow or the sun doesn’t shine.

Q8: Does PJM’s approach to renewable generation align with the President’s goals and his stimulus package?

A8: Yes. PJM works with state and federal officials to facilitate their ambitious goals for new renewable generation. We know that achieving those goals will require expansion of the high-voltage transmission system.

The President has said infrastructure is key to strengthening the future. It is the foundation for renewable energy efforts.

Q9: How much new transmission will be needed to enable more renewable generation?

A9: A Joint Coordinated System Plan – developed by PJM, Midwest ISO, Southwest Power Pool and Tennessee Valley Authority – provided a first round estimate of how much transmission investment would be needed to supply their areas with 20 percent of its electricity from wind mostly in the Midwest and Southwest. The study estimates that it could require more than $80 billion in new transmission infrastructure.

Q10: Are members in PJM exploring any other alternative energy sources?

A10: Plug-in Hybrid Electric Vehicles (PHEVs) and lithium ion battery technologies are just two newer technologies that offer potential for energy storage to be further explored. PJM is currently working with AES to pilot producing power from a one megawatt ion battery array stationed on the PJM campus.

In January 2009, PJM hosted a summit on PHEVs along with the Electric Power Research Institute (EPRI) and drew many industry leaders together for a dialogue about the future of PHEVs. Among them newly appointed FERC chair Jon Wellinghoff, auto manufacturers, utility executives, academia representatives, system operators, regulators and experts.

Q11: What about climate change?

A11: We have studied the potential impact of carbon control legislation. We modeled the short-term impact of various climate change control policies on both the price and dispatch of electricity in our region.

The study concluded that the legislative proposals of the 110th Congress to reduce carbon dioxide would have to have cap and trade prices of CO2 in the $35 to $40/ton before it changed our market dispatch to reduce CO2 emissions.

Regardless of the higher electricity prices that could result from CO2 prices, the increased market penetration of energy efficiency and some types of demand response can reduce total consumption and customer costs for electricity. In turn they can mitigate in an efficient market the wholesale price impacts, and result in additional CO2 emission reductions.

Q12: How does GATS work?

A12: GATS is the Generation Attribute Tracking System, developed by PJM affiliate, PJM-EIS.

Most states in PJM have developed target goals for renewable energy, or Renewable Portfolio Standards (RPS). The states within PJM track the amount of renewable generation they produce or buy through GATS. GATS, which began tracking renewable energy production in 2005, produces a certificate for each one-megawatt of renewable power produced. The certificate can be traded with other states in order to meet their RPS requirements.