PJM EIS Generation Attribute Tracking System (GATS) Presented to NASEO 2015 Mid-Atlantic Regional Meeting June 22, 2015
Who is PJM EIS? PJM Environmental Information Services, Inc. Formed in February 2005 Capitalized independently of PJM Interconnection, L.L.C. PJM members have no cost responsibility or liability Generation Attribute Tracking System (GATS) GATS is owned and administered by PJM EIS Tracks environmental attributes of generation Supports reporting and verification requirements related to environmental compliance (e.g., state Renewable Portfolio Standards, and fuel mix and emission disclosure) and related markets Costs borne solely by GATS users 2
PJM EIS Services As the GATS Administrator, PJM EIS provides the following services: Performs all system maintenance and development. Supports the Customer Hotline Develops and delivers customer training as needed (in-person, via the internet, and recorded) Schedules periodic meetings of the GATS Subscriber Group and State Agency Advisory Committee. 3
Providing Valuable Services to PJM States PJM-EIS continues to work with state agencies as programs evolve and additional states implement RPS programs. State RPS State Goal GATS certificates required for RPS compliance: NJ: 20.38% by 2021 MD: 20% by 2022 DE: 25% by 2026 DC: 20% by 2020 PA: 18%** by 2020 OH: 12.5% by 2026 VA: 15% by 2025 (voluntary goal) GATS certificates accepted for RPS compliance: IL: 25% by 2025 IN: 10%** by 2025 (voluntary goal) GATS certificates must be imported into the state s tracking system for RPS compliance: NC: 12.5% by 2021 (IOUs) MI : 10% + 1,100 MW by 2015 DSIRE: www.dsireusa.org March2015 Minimum solar requirement ** Includes non-renewable alternative energy resources 4
Regulatory Agencies with Accounts in GATS 5
PJM EIS Web Site Contains an Overview of State Programs 6
GATS Status (as of 6/2015) 10,800+ GATS subscribers 63,500+ renewable generators registered in 22 States & DC 61,800+ solar PV facilities in 17 states & DC Solar PV total nameplate capability: 2,331.7 MW States with over >1000 registered renewable generators: NJ 33,975 MD 14,169 PA 7,715 DE 1,957 OH 1,666 DC 1,501 VA 1,198 7
GATS Design Overview All MWhs of PJM generation are tracked. A certificate market separate from energy is enabled for renewable generation. Certificates (i.e., credits) traded separate from energy Certificates can have different value depending on their attributes (e.g., fuel type, location, date of generation, etc). It is a single information system that will support a range of reporting, verification, and compliance requirements (e.g., disclosure, RPS, voluntary retail markets, etc). It is a regional system that will enable PJM states and market participants to support varying needs and priorities. A system that is flexible enough to meet evolving state requirements. 8
GATS Design Overview GATS Operating Rules were established by a stakeholder group that included representatives form various state agencies, market participants, environmental advocates, and PJM staff Each state determines what can resources are eligible to be used for compliance with its RPS States also determine the acceptable means for reporting generation. GATS supports: Reporting by Balancing Authority (e.g., PJM or MISO) Third Party Reporting (e.g., solar monitoring or Electric Distribution Company) Self-Reporting Production Estimates (for small solar PV or solar hot water) 9
Tracking Energy Efficiency Credits GATS supports the creation of Energy Efficiency Credits (over 94,000 created to date) GATS Operating Rules can be amended to incorporate additional rules governing the creation of energy efficiency credits Operating Rules would reflect Evaluation, Measurement, and Verification (EM&V) guidance developed by U.S. EPA and the States. As an all-generation tracking system, GATS is uniquely positioned to translate energy savings into avoided emissions Leveraging the existing regional registry is the most efficient and cost-effective solution 10
PJM CO 2 Emission Report CO2 Emission Rate (lbs/mwh) 2,500 2,000 1,500 1,000 500 0 Jan May Sep Jan May Sep Jan May Sep http://www.pjm.com/~/media/committees-groups/committees/mic/20150311/20150311-informational-marginal-carbon-emissions-report.ashx Jan May Sep Jan May Sep Jan May 2009 2010 2011 2012 2013 2014 Marginal On-Peak Marginal Off-Peak PJM System Average Sep 11
RGGI Leakage Analysis CO2 Leakage into PJM RGGI Region CO2 Emissions (tons) 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Imports into RGGI Region RGGI No Allowance Requirement Unit 12
Developing Streamlined Processes Auction Platforms Inter-Registry Transfers Third Party Reporters Aggregators State Solar Registration Systems Solar Production Estimates REC Management Systems Interfaces are being developed to automate processes and satisfy the needs of the Subscribers as well as the States within the PJM Region Currently there are seven existing Interfaces in GATS (Geocoding API is not shown) 13
Improving Market Efficiency and Transparency Additional information now publicly available to improve market transparency: Aggregator/Broker Listing Listing of Aggregators and Brokers in GATS Renewable Generators Registered in GATS Listing of all RE systems and their State RPS Enrollment(s) Solar Weighted Average Price Listing of SREC Trades by State, by Month Bulletin Board & Buyer s Bulletin Board Listing of Credits for Sale/Purchase RPS Eligible Certificates & RPS Retired Certificates Listing of Eligible / Used RECs (i.e., supply and demand) 14
Market Data Public Reports 1 2 3 15
EXAMPLES GATS PUBLIC REPORTS 16
PJM Renewable Energy (MWh) MWh (millions) 35 30 25 20 15 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Biomass Solar Wood Methane Solid Waste Water Wind 17
PJM System Average Fuel Mix 100% 90% 80% 70% 60% 50% 40% 30% 20% Nuclear Renewables Oil Gas Coal 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 18
PJM Average Emissions CO2 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1,000 950 PJM Average Emissions (lbs/mwh) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Carbon Dioxide Sulfur Dioxides Nitrogen Oxides 9 8 7 6 5 4 3 2 1 0 SO2 and NOx 19
Example Public Reports: RPS Retired RECs 2,500,000 RECs Retired for VA RPS by Fuel Type (2010 to 2012) 2,500,000 RECs Retired for VA RPS by State (2010 to 2012) 2,000,000 2,000,000 1,500,000 1,500,000 1,000,000 1,000,000 500,000 500,000 0 2010 2011 2012 WAT WND MSW HPS WDS 0 2010 2011 2012 MD NC PA VA WV IN NJ IL 20
Renewable Energy Resources in VA (Capacity in MWs, as of 12/31/2014) Energy from Waste, 123.0 Solar PV, 7.7 Landfill Gas, 150.6 Wood Waste, 609.5 Hydro, 368.7 21
Virginia Solar Capacity (kw) in GATS (as of 12/31/2014) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 22
NJ Solar Prices / Installed MW $400 NJ Solar Prices / Installed MW (Jan 2013 to Dec 2014) 1600 $300 1200 $200 800 $100 400 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Active KW DC Weighted Average Price per Certificate 23
Solar Capacity Additions by State 2,500 Installed Solar PV (MW DC ) (1/2011 to 2/2015) 2,000 1,500 1,000 500 0 Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb NJ MD PA OH NC DE DC VA Other 24
In-State versus Out-of State Sourcing Slide credited to Lori Bird (NREL), SREC Markets: Status and Trends, 1/18/2012 Source of SRECs retired for 2010 compliance Maryland: Ohio: Pennsylvania: DC: 68% in-state 35% in-state 32% in-state 13% in-state Mostly in-state Mostly out-of-state Several States Are Sourcing SRECs Primarily from In-State Systems, While Others Are Sourcing More Broadly Rules changing in Maryland and DC 25
Example: RPS-Eligible REC Status NJ Class I 2012 RPS NJ 21% Retired - Other 5% Available 52% Other 22% RPS PA 7% RPS IL 2% RPS OH 5% RPS DE 3% RPS MD 5% RPS DC 0% 26
For Additional Information Ken Schuyler President, PJM EIS Phone: (610) 666-8918 Email: ken.schuyler@pjm.com Evelyn R. Robinson Manager, Regulatory & Legislative Affairs Cell: (610) 639-0491 Email: evelyn.robinson@pjm.com 27