AOCE will be presented during the June 1 PJM CIFP Resource Adequacy meeting

[UPDATE October 5, 2023: An ERCOT RFP for specific grid services is a perfect example of the AOCE ISO Reliability Bid (ISORB) concept]

[UPDATE 9/22] An off-shore wind farm project in Poland is a prime example of the type of capacity transaction that AOCE is designed to accommodate to fund off-shore wind projects and other capacity build outs to achieve decarbonization goals. This serves as an example of what is possible for the Gentleman in New Jersey that asked a similar question.

[UPDATE 6/1] A big thank you to PJM for allowing me the opportunity to present AOCE today. This journey started in 2019 and this is the first public presentation of AOCE. I received one question from a gentleman with the NJBPU: "Would wind farms off the NJ Coast be eligible to place offers into AOCE? The answer is yes, so long as PJM qualifies the resources to provide the grid services being offered. This could take the form of a VPP, grouping several wind turbines into a single capacity resource that will receive a capacity payment, if their offer clears the market when the grid service capacity they offered is being cleared (receiving capacity supply obligations) by PJM. The capacity payment is actually paid to the ACC owners (investors) of a capacity commitment. Generator owners/operators receive a Capacity Supply Obligation when the ACC clears the market.

[UPDATE 7/29, 2023 AFTER IEEE PES] EirGrid provides a realistic look at the challenges with higher penetrations of IBR and the effect on system frequency, providing further proof of the need to acquire grid services each hour, by location.  "The displacement of conventional synchronous generators by converter-interfaced generation such as solar and wind energy leads to reduced levels of system inertia. Largescale low-inertia power grids face many challenges, including but not limited to frequency stability, voltage stability, and converter-driven stability [1]. While the power system community including both academia and industry is working towards addressing the above challenges, an emerging critical issue that, so far, has received little to no attention is frequency quality. The objectives of this paper are to fill this gap and to raise awareness in the community on the topic."

I'm pleased to announce that PJM has scheduled an AOCE presentation for the June 1 CIFP Resource Adequacy meeting. Interested parties will need to register for the event

AOCE is the only capacity market design, that I'm aware of, that embraces consumer participation in capacity market reforms by supporting Green Buyer purchases as part of satisfying reliability needs, in addition to achieving State energy goals as a top priority.. I highly recommend watching this 2 minute video provided by Constellation Energy that highlights the need to accommodate Green Buyer energy goals by enabling hourly capacity commitments when considering capacity market reforms, which AOCE enables. The AOCE design relies on the application of Integrated Resource Planning (IRP) methods by an ISO and State Energy Policy Makers and Market Stakeholders to determine the amount of grid services needed by hour and location to satisfy reliability requirements when deciding to issue capacity supply obligations, both near term and long-term.

I encourage interested parties to read PJM's problem statement to understand the need for capacity market reforms that support Green Buyer and State Energy goals in the quest to ensure reliability during each hour throughout the energy transition.

Looking forward to this opportunity to describe the AOCE capacity market reform concept for the energy transition developed in 2018/2019, which started life here on Energy Central.

AOCE intersects with several recommendations for DER integration offered by NARUC, especially with regard to meeting State Energy Policies.

The adoption of grid services is expected to grow substantially during the energy transition.

I only ask that anyone with constructive criticism of AOCE also be prepared to offer a fix for whatever flaws are identified so that I can make appropriate adjustments to the design. Two of the people that helped with AOCE, Eugene Litvinov and Angie O'Connor are no longer with us and I dedicate AOCE to their memory.