Clean Energy Thrives in PJM’s Competitive Electricity Market

Clean energy generation has grown at a phenomenal pace in the PJM Interconnection market.  Data from PJM’s Environmental Information Services’ (EIS) tracking system shows that over the past five years, wind generation has increased almost 1,300 percent, from 500,000 megawatt-hours (MWh) in 2005 to 6,500,000 MWh in 2009. Solar power, which accounted for only 100 MWh in 2005, produced more than 81,000 MWh – a 3,000 percent increase.

This infusion of clean energy has reduced PJM’s carbon dioxide emissions per MWh of generation by 12 percent since 2005, created green jobs, and provided customers with low-carbon energy alternatives, according to the EIS data.

The EIS‘ innovative Generation Attribute Tracking System (GATS) makes it possible to follow these significant trends. GATS tracks the attributes of all energy either produced or traded within PJM, and creates a certificate categorizing every megawatt-hour of electricity produced, as well as energy efficiency measures. These certificates define specific attributes of all generation, including fuel source and emissions, and allow GATS participants to better satisfy the specific requirements of their state’s renewable portfolio standard.

"Reliable and accurate data about specific attributes of the electricity we use is proving more valuable to not only those in our industry but also to state agencies, other industries and consumers," said Ken Schuyler, vice president of PJM EIS. "Since we launched five years ago, we've seen GATS data used for a variety of noteworthy studies, including studies on carbon dioxide, nitrogen oxide and sulfur dioxide emissions."

PJM has become a model for innovation, clean energy and affordable electricity. This latest data once again demonstrate the ability of well-structured competitive markets to deliver tangible economic and environmental benefits to consumers. Joel Malina | April 26, 2010