Dive Brief:

• PJM can reliably integrate up to 30% of wind and solar energy, assuming the grid operator adds about $14 billion in transmission and additional regulation reserves, according to a final PJM study.
• As renewables are added to PJM's system, production costs and power imports from other regions will fall, as will coal and gas-fired output.
• With increased renewables, fossil-fueled power plants in PJM, which spans from the Mid-Atlantic states to Illinois, would see their revenue “decline significantly,” the study by GE Energy Consulting said.
• The study found that PJM's large geographic footprint makes it easier to integrate intermittent renewable energy by lowering overall variability.

Dive Insight:

Even with up to 30% renewable energy, PJM's grid would operate without major problems, according to the study. “In general, all the simulations of challenging days revealed successful operation of the PJM real-time market,” a summary of the report said.

Fossil-fueled power plants would take it on the chin financially with increased renewables in PJM. “To remain economically viable, these plants would either need to receive a larger share of their revenues from a capacity market or perhaps increase energy prices to help cover fixed costs,” the report said. “It is suggested that PJM investigate the potential consequences of reduced energy market revenues on its conventional generation fleet.”