This ICF International white paper summarizes key elements of PJM ISO's capacity performance (CP) proposal and discusses its implications for market participants.
The proposal introduces a major restructuring of its capacity market. To maximize opportunities, PJM stakeholders will need to consider their new bidding strategy and adjusted investment plans carefully. Key discussion topics include:
- Supply and demand balance and key drivers of pricing for CP products
- Expected capacity prices and long-term effects on energy prices
- Winners and losers from the proposal