What is the regulation requirement as a percentage of load?

The regulation requirement, often expressed as a percentage of load, generally refers to the amount of reserve capacity that must be maintained to ensure stability and reliability in the transmission grid. For most systems, particularly in the context of PJM and similar regional transmission organizations, this requirement is typically around 2% of the total load.

This percentage accounts for the fluctuations in demand and the variability in generation, ensuring there is enough responsive capacity available to either ramp up generation or reduce load as necessary. This allows operators to maintain system frequency within acceptable limits and effectively respond to unexpected changes in supply or demand.

By having a 2% regulation requirement, it provides a balanced approach: it is sufficient to manage daily variability without overburdening generators or adding unnecessary costs to the system. This standard aids in reliable operations while also supporting economic efficiency within the energy market.