Alstom Grid has implemented a new market management software system, enabling the PJM Interconnection to more efficiently deploy fast-ramping energy resources in response to surging demand for electricity. This installation of Alstom's upgraded e-terramarket platform also makes PJM compliant with Federal Energy Regulatory Commission (FERC) Order 755, which establishes a performance-based compensation system for sources of electricity that can be brought online quickly to ensure reliability.

As North America's largest wholesale energy market, PJM faces a growing challenge to ensure a constant flow of electricity in an environment where demand can fluctuate rapidly. Alstom's recently installed e-terramarket 3.0 software allows PJM to more efficiently call on energy resources, such as battery and fly-wheel-based storage systems, ideally suited to providing a short-term boost in the supply of available electricity. Alstom Grid also delivered a new shortage pricing model for PJM that produces more accurate electricity prices when real-time operating reserves on the grid fall short of required levels.

“This new performance-based market structure creates greater incentive compensation for high-performing existing resources — and incentive for development of new, fast-responding technologies, such as batteries or flywheels, to participate in the frequency regulation market,” said Andrew L. Ott, senior vice president, PJM Markets. “Ultimately, as the actual performance of frequency regulation providers better matches the amount of resources needed, the system should realize greater efficiency and savings.”

In 2012, Alstom Grid also delivered new functions for demand response compensation, enabling PJM to become the first regional transmission organization in the United States to comply with FERC's Order 745, which addresses payments for demand response.

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