PJM’s Latest Capacity Auction: A Tough Market for Nuclear and Demand Response

PJM, the entity responsible for transmission grids from the mid-Atlantic coast to the shores of Lake Michigan, just closed its first auction for grid resources under its new capacity performance regime. The results are bad for both demand response and some nuclear power plants. 


PJM <a href="http://insidelines.pjm.com/pjm-capacity-auction-sees-strong-response-from-market-participants/" >announced</a> Tuesday that its Base Residual Auction for capacity for the 2020-2021 period cleared a price of $76.53 per megawatt-day, well below the prices of $80 to $100 from <a href="http://www.pjm.com/~/media/markets-ops/rpm/rpm-auction-info/2019-2020-base-residual-auction-report.ashx" >last year&rsquo;s auction</a>. Capacity prices were higher in more congested or heavily populated parts of PJM&rsquo;s territory. But with the exception of its Eastern Maryland region, they were lower than last year&rsquo;s prices, largely due to the expectation of continued low natural gas prices for years to come.&nbsp;


These clearing prices were too low for some nuclear power plants that haven&rsquo;t yet received <a href="https://www.greentechmedia.com/articles/read/a-survivors-guide-to-the-debate-over-existing-nuclear-plants">state zero-carbon incentives</a>. Exelon announced Wednesday that its Three Mile <div class="post-limited-image"><img src="http://feeds.feedburner.com/~ff/GreentechMedia?d=yIl2AUoC8zA" border="0"></div>
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President Macron’s Pick for Energy Minister Will Be Good for Renewables, Bad for Nuclear

In the wake of presidential elections, France&rsquo;s growing renewables industry could benefit from the appointment of&nbsp;an environmental activist to head energy policy.


Emmanuel Macron, who enjoyed a landslide victory in France&rsquo;s May 7 elections, has appointed nature documentary maker Nicolas Hulot as Minister of Ecological and Solidarity-Based Transition, in charge of the Ministry of the Environment, Energy and Marine Affairs.&nbsp;


Hulot, a former press photographer who rose to fame on the back of environmental documentaries such as <em>Ushua&iuml;a, le magazine de l&#39;Extr&ecirc;me</em>, has been critical of France&rsquo;s dependence on nuclear energy.&nbsp;


News of his appointment resulted in a seven-point drop in share price for the state-owned utility &Eacute;lectricit&eacute; de France (EDF), which gets <a href="https://www.edf.fr/en/the-edf-group/who-we-are/edf-at-a-glance" >78 percent</a> of its generation from 58 nuclear reactors across the country.&nbsp;


EDF shares had previously surged on the back of speculation that Macron would push nuclear as part of his government&rsquo;s energy <div class="post-limited-image"><img src="http://feeds.feedburner.com/~ff/GreentechMedia?d=yIl2AUoC8zA" border="0"></div>
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