PJM is a regional transmission organization that coordinates the movement of wholesale electricity in 13 states and Washington D.C. It ensures grid reliability and administers wholesale electricity markets. PJM focuses on keeping the lights on by scheduling generation to meet demand, administering markets to buy and sell electricity, and planning for future grid needs through transmission expansion and accounting for power plant retirements. While European markets involve more local and bilateral trading as well as zonal pricing, PJM uses locational marginal pricing in day-ahead and real-time markets to efficiently dispatch electricity on a regional scale.

1. American Electricity Market PJM
Prepared by-
Ashish Jha ()
Onkar Jadhav (11007877)
Hafeez Khan (11008321)
Vedant Kadam (11007891)

2. AMERICAN ELECTRICITY MARKET
• A market of 300 million people spread across 50 states and 9.8 million
square km .
• Electricity generation is governed by complex network of several federal
states .
• Electricity manged and distributed by three interconnection zones .
• US electric utilities are regulated by both state and ferderal regulatory
bodies that are :-
 FERC (Federal energy regulatory comission)
 State utility comission

3. • Stands for Pennsylvania New jersey
Maryland power pool .
• Coordinates the movement of
electricity in all or parts of 13 states and
the district of columbia .
• It is a RTO in united states and the parts
of eastern interconnection grid .
History at a glance
• Founded in 1927
• Independent federally regulated
organization .
• Became ISO in 1997 .
• Designated an RTO in 2001 .
Source- http://www.ferc.gov/market-oversight/mkt-electric/pjm/elec-
pjm-footprint.pdf

4. KEY STATISTICS

5. MARKET
• PJM administers wholesale markets for large
blocks of electricity .
• Internet base market .
• Attracts renewable power sources , such as
wind , to the region .
• Administer demand response program .

6. EUROPEAN ELECTRICITY MARKET

7. EU ENERGY POLICY
It has three main goals :-
 Security of supply
 Competitiveness
 Sustainability
ENERGY UNION
Energy union strategy project launched in 2015 with of providing :-
 Secure energy
 Sustainable energy
 Competitive energy
 Affordable energy .
MAIN TASK
 Energy security , solidarity and trust .
 A fully integrated european energy market .
 Energy efficiency contributing to moderation of demand .
 Decarbonising the economy .
 Research, innovation and competitiveness .

8. EU ENERGY TARGETS
Targets for 2020
• 20% of energy from renewable sources .
• 20% energy efficiency improvement .
• Reducing greenhouse gases by at least 20% compared to 1990 levels .
Targets for 2030
 40% reduction in greenhouse gas emission .
 At least 27% from renewables .
 Increase energy efficiency by 27-30% .
 15 % electricity interconnection .
Target for 2050
80-90% cut in greenhouse emission compared to 1990 levels.
CURRENT SCENARIO
• Greenhouse gas reduced by 18% compared to 1990 level .
• Renewables share reached 16% .

9. SINGLE MARKET PROGRESS
• Wholesale electricity prices declined by one third and whole sale
gas prices remained stable .
• Consumers have more choices .
• Cross-border trade in gas and electricity between EU countries
has increased.
• Establishment of missing missing links between EU countries .
Further Steps
 More investments in infrastructure including smart grids should
be made .
 Government intervention should only happen when secure
energy flows cannot be guaranteed by the market .
 Proper link between retail and wholesale market .

10. How PJM Works

11. Three Priorities
• PJM’s three priorities are: keeping the lights on,
administering the buying and selling of electricity through
wholesale electricity markets, and assessing and planning
for the future needs of the electric grid
Source- https://learn.pjm.com/three-priorities.aspx

12. Keeping the Lights ON
Generation to meet Demand
Source- https://learn.pjm.com/three-priorities/keeping-the-
lights-on/how-pjm-schedules-generation.aspx
Energy use varies with Season
Source- https://learn.pjm.com/three-priorities/keeping-the-
lights-on/how-pjm-schedules-generation.aspx

13. Buying and Selling Energy
1. Energy Market
• PJM’s real time market
• PJM’s day ahead market
Source- https://learn.pjm.com/three-priorities/buying-and-selling-energy/energy-markets.aspx

14. Buying and Selling Energy
2. Capacity Market
• Procurement of capacity three years before it is needed through a
competitive auction,
• locational pricing for capacity,
• a variable resource requirement curve.
Source- https://upload.wikimedia.org/wikipedia/commons/a/ae/Wal-Mart_in_Madison_Heights.jpg

15. Buying and Selling Energy
3. Locational Marginal Pricing
• to set prices for energy purchases and sales
• to price transmission congestion costs
• analogous to a taxi ride
Source- https://learn.pjm.com/three-priorities/buying-and-selling-energy/lmp.aspx

16. Planning for Future
1. Regional Transmission Expansion Planning
• New transmission lines
• Replacing existing high-voltage transmission lines with lines capable of
carrying more power
• Installation of devices that maintain voltage levels.
Source- https://learn.pjm.com/three-priorities/planning-for-the-future/rtep.aspx

17. Planning for Future
2. Power Plant Retirements
• Newly built Power Plant, upgrades to existing
plants or from sources external to PJM.
• Transmission line upgrades or new
transmission lines and substations.
• Increases the overall flow of electricity.
• Upgrades typically end up bringing more MW
Source- https://learn.pjm.com/three-priorities/planning-for-the-
future/explaining-power-plant-retirements.aspx

18. Market and Operations
26.09.201626.09.2016
Source- http://www.pjm.com/markets-and-operations.aspx

19. Increasing Renewables
Source- https://www.cleanenergywire.org/factsheets/setting-power-price-merit-order-effect

20. Conclusion
PJM- European markets-
 Powerpool trading
 Day ahead auctions
 Local authorities are involved
 Nodal Pricing
 NO market interconnection
 Bilateral trading
 Limited public involvement
 Zonal Pricing
 Market coupling
Source- https://tu-
dresden.de/gsw/wirtschaft/ee2/ressourcen/dateien/dateien/ordner_enerday/ordner_enerday2007/ordner_vortrag/meeus_
paper.pdf?lang=en

21. Sources
• http://www.pjm.com/about-pjm/who-we-
are.aspx
• http://www.ferc.gov/market-oversight/mkt-
electric/pjm.asp
• https://learn.pjm.com/electricity-basics.aspx

22. THANK YOU..!