Analysis and Review of the Market Operations of PJM under Deregulation Framework

The development of the deregulated market structures to overcome the shortcomings of vertically aligned grid has introduced new entities in the market framework. Independent System Operators (ISOs) / Regional Transmission Operators (RTOs) are non-profit independent players in the market structure with an objective to maintain the stable operation of the main grid. Out of 10 RTOs/ISOs currently operating in different regions of United States (US), PJM operates in 13 states of US with an aim to develop efficient market framework. The main characteristics of the PJM market are its generation and load portfolio, renewable generation trend, demand response resources, energy storage, and market operations in day ahead and real time market. Additionally, PJM provides certain ancillary services such as regulation and synchronized reserves to maintain the power balance of the system during the periods of power mismatch. This paper briefly overviews each mentioned aspect of PJM market while taking into account the recent development and changes in its operation. Additionally, different orders of Federal Energy Regulation Commission (FERC) are discussed to highlight the development of the market components of PJM.