Full of Cold Air - PJM's $12B modeling mistake
- Earlier this year, we explained why residents of the PJM area, America’s largest electricity market, have seen their power bills rise by ~20%.
- We argued that the main culprit was PJM’s auction design choices and how PJM models demand and supply.
- To better understand the extent of the problem, our Energy Model team spent the last 6 months reverse-engineering PJM’s main system model, the ‘Reserve Requirement Study’, which to date has been a black box.
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- Earlier this year, we explained why residents of the PJM area, America’s largest electricity market, have seen their power bills rise by ~20%.
- We argued that the main culprit was PJM’s auction design choices and how PJM models demand and supply.
- To better understand the extent of the problem, our Energy Model team spent the last 6 months reverse-engineering PJM’s main system model, the ‘Reserve Requirement Study’, which to date has been a black box.
Sources: Semianalysis