Alstom Grid has recently implemented its e-terramarket 3.0 market management software for the PJM Interconnection. According to Alstom Grid, the software will enable PJM to efficiently deploy fast-ramping energy resources in response to surging demand for electricity, as well as make PJM compliant with Federal Energy Regulatory Commission Order 755, which establishes a performance-based compensation system for sources of electricity that can be brought online quickly to ensure reliability.
In addition, Alstom Grid delivered a new shortage pricing model for PJM that the company says produces more accurate electricity prices when real-time operating reserves on the grid fall short of required levels.
"This new performance-based market structure creates greater incentive compensation for high-performing existing resources - and incentive for development of new, fast- responding technologies, such as batteries or flywheels, to participate in the frequency regulation market,” says Andrew L. Ott, senior vice president of PJM Markets. “Ultimately, as the actual performance of frequency regulation providers better matches the amount of resources needed, the system should realize greater efficiency and savings.”
