EMC Development Company, Inc., doing business as EMC Electric Market Connection, was established in 2005 to develop clean energy projects that utilized solar, wind, biogas, natural gas, and cogeneration. Since 2010 EMC has focused on securing additional financial rewards for building owners and contractors who have completed energy efficiency projects within the PJM wholesale electricity market.
What is PJM Interconnection?
Headquartered in Valley Forge, Pennsylvania, PJM Interconnection, LLC is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or part of 13 states based primarily in the Mid-Atlantic U.S.
PJM operates the world’s most competitive wholesale electricity market, which handles $40 billion in electricity transactions annually. It also manages the corresponding high-voltage electricity grid to ensure reliable energy delivery to more than 61 million people within its geographic territory.
PJM Interconnection, founded in 1927, directs and coordinates the operation of the transmission grid serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. PJM directs and coordinates the operation of the region’s electric transmission grid, which includes 62,556 miles of transmission lines.
PJM’s capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by procuring the appropriate amount of power supply resources needed to meet predicted energy demand three years in the future. Capacity market participants offer or “bid” power supply resources into the market that either increase energy supply or reduce demand. These resources include new generators, demand response (consumers reducing electricity use in exchange for payment), energy efficiency and transmission upgrades.
When you complete electrical energy efficiency projects that permanently reduce PJM’s electricity load, you help PJM reduce the electric generation capacity that PJM must provide for during peak load events each year. These demand reductions help PJM ensure electric grid reliability and may be eligible for reward through the capacity market. Watch the video below, developed by PJM, which offers an explanation of the PJM capacity market:
What is an Energy Efficiency (EE) Resource?
PJM defines an EE Resource as a project that involves either the installation of devices/equipment that are more efficient or the implementation of more efficient processes/systems.
To qualify as an approved EE Resource, a project must achieve a permanent, continuous reduction in electrical energy consumption during PJM’s defined peak demand periods. Examples of projects which do qualify include the installation of energy-efficient lighting, HVAC system retrofits, and the installation of high efficiency mechanical systems.
What kinds of EE projects are eligible?
new construction lighting
HVAC equipment upgrades
mechanical system and chiller equipment upgrades
Is this a fair deal?
Yes, our Capacity Rewards Program is completely fair. The program allows all parties, large & small, to share in the new-found value that each energy efficiency project has as a resource in the capacity market. EMC passes the benefits on to you.
What's the catch?
Great question—but there is no catch! This is just another incentive that rewards your environmental stewardship and promotes energy conservation.
In what states are projects eligible to participate*?
PJM territory is shown in blue.
*Some utilities within PJM retain the capacity rights for energy efficiency projects. Talk to the staff at EMC to learn if your energy efficiency project is eligible for Capacity Rewards.
Can partners participate with both EE and Demand Response projects?
Yes. Demand Response capacity value comes from “dispatchable” reductions in energy consumption which are often controlled through building management systems. EE value comes from “permanent, continuous” reductions achieved by installing energy efficient equipment. Both kinds of capacity values are eligible to participate in PJM’s Capacity Market. EMC focuses solely on energy efficiency capacity and is not a demand response provider.
What determines an electrical energy efficiency project’s value to PJM?
The value of an EE Resource is based upon the project’s qualified electric demand reduction (as measured in kilowatt savings) and the region where the project is located.
What is a Capacity Performance Energy Efficiency (EE) Resource?
PJM defines two categories of energy efficiency resources: Capacity Performance EE Resources and Base Capacity EE Resources. Projects qualifying as Capacity Performance EE Resources must achieve permanent reductions in both PJM’s defined summer and winter peak periods. Base Capacity EE Resources are qualified from projects or portions of projects that provide only summer period reductions.
Can projects that only achieve winter reductions participate?
Yes. EMC is typically able to qualify, and then aggregate the permanent load reductions achieved in the winter performance hours together with excess reductions in the summer performance period to create Capacity Performance EE resources.
What are my obligations?
Your obligations are minimal, and your costs are zero. We’ll ask you to sign a simple authorization stating that an EE project has been completed and that you authorize us to qualify and offer your project into PJM’s capacity market. We’ll also ask you to respond to an annual email to confirm that you’re continuing to use the energy efficient equipment. The process is simple and guided by our professional staff.
When and how do I get paid?
We pay our partners directly for the committed EE Resources that have been qualified and offered in the PJM capacity market auctions. Payments are made based on the number of qualified kilowatts saved. You are eligible to receive payment annually for up to four years (depending on your project), based on project installation period.
Your payment will come as a check from EMC.
How much money will I get for my project?
For an idea of the kinds of rewards our partners have received, read our selection of case studies or contact us to discuss your energy efficiency project(s).
How much will it cost me to participate?
There is no cost to participate. We do not charge to review your projects for consideration.
Are there risks?
No. There is absolutely NO RISK to you.
Why should I partner with Electric Market Connection?