PJM recently released the results of the 2019/2020 BRA auction. This is the second BRA auction held under the new Capacity Performance (CP) capacity market structure. The results were surprising and disappointing for many generators, and below market expectations for most zones. Market participants are faced with numerous questions and decisions around the future of coal and nuclear fleets, the viability of the merchant model, etc.
Topics of discussion include:
- Drivers of lower bids
- Understanding the pricing model for new entry
- Survivability of the coal and nuclear fleet with low prices
- Sustainability of new development at these low prices
- CP vs. Base product prices
- Expectations for upcoming auctions