Report
March 1, 2021
Alternative Resource Adequacy Structures for Maryland: Review of the PJM Capacity Market and Options for Enhancing Alignment with Maryland’s Clean Electricity Future
Prepared for the Maryland Energy Administration
Maryland has for two decades relied on competitive wholesale markets within the PJM Interconnection (PJM) regional transmission organization (RTO) to procure low-cost and reliable power. Maryland customers have benefitted enormously from participation in the broad regional marketplace for electricity, saving on the order of $270-340 million per year from wholesale power market participation. These savings have derived largely from efficient generation dispatch across the large multi-state region, reductions in the quantity of resources needed to maintain reliability, and competition in PJM’s markets that spurred innovative technologies such as demand response and low-cost new generation.
