Energize Your Career – Master the PJM Generation Dispatcher Exam 2025!

The purpose of the Capacity Market in PJM is to ensure long-term reliability by procuring sufficient generation capacity to meet future demand for electricity. This mechanism allows PJM to maintain a reliable electric system by ensuring that enough power plants are available and can be called upon, especially during peak demand periods.

By fostering a competitive environment where electricity suppliers can bid to provide capacity, the Capacity Market encourages investments in new generation resources and the maintenance of existing ones. This forward-looking approach allows PJM to address potential shortfalls in generation and manage grid stability effectively, thus fulfilling its responsibility to deliver reliable power to consumers.

The emphasis on long-term reliability distinguishes this market from others focused solely on immediate price stabilization or the promotion of specific types of generation technologies, such as renewables, which may not fully address the broader requirements for capacity in the grid.