ORDC (Operating Reserve Demand Curve) is a market mechanism that values operating reserves in the wholesale electric market based on the scarcity of those reserves and reflects that value in energy prices. It is a pricing mechanism used to ensure sufficient operating reserves are available to maintain system reliability. It establishes the value of reserves based on real-time conditions, increasing the price for reserves as the supply of reserves diminishes and the risk of a shortfall increases.

Posts

FERC Orders PJM To Change Reserve Market Rules, Delay Capacity Auctions | Capacity News

/0 Comments/in /by

Ethan Howland reports in Utility Dive that the Federal Energy Regulatory Commission on Wednesday ordered the PJM Interconnection to revise its reserve market rules, which will delay the grid operator’s upcoming capacity auction. This was a reverse of an earlier decision. In a 3-1 vote, FERC reaffirmed its previous decision to direct PJM to consolidate tier one and tier two reserve products, but said it had erred by approving changes to the grid operator’s operating reserve demand curves (ORDC), which help set the price for reserves. Our Scott Niemann, Director and Principal of ESAI Power said, “This rule change seems like a small detail, but the ripple impacts may be more significant and touch a lot of aspects of the PJM market.”

Read more