The PJM Energy Market procures electricity to meet consumers’ demands both in real-time and in the near-term. It includes the sale or purchase of energy in PJM’s Real-Time (five minutes forward) Energy Market and Day-Ahead Market (one day forward).
PJM’s Real-Time Market is a spot market – meaning that the product is procured for immediate delivery - in which current prices (called locational marginal prices) are calculated at five-minute intervals based on actual grid operating conditions. Real-time energy prices are posted on the PJM Operational Data webpage. Transactions between buyers and sellers are settled hourly; invoices are issued to market participants weekly.
PJM’s Day-Ahead Market is a forward market in which hourly locational marginal prices are calculated for the next day based on the amount of energy generators offered to produce, the amount of energy needed by consumers and scheduled transactions between buyers and sellers of energy.