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The PJM synchronized reserve market provides PJM participants with a market-based system for purchase and sale of the synchronized reserve ancillary service. Demand resources that choose to participate in the synchronized reserve market must: (1) be capable of dependably providing a response within ten minutes, and (2) have appropriate metering infrastructure in place to verify response and compliance with reliability requirements and market rules.

Operation
The synchronized reserve market is cleared every hour based on the offers that are submitted by various resources. The market clearing results establish the synchronized reserve assignments for each cleared resource in order to meet the synchronized reserve requirement for the entire market and for any constrained subregions of the market. Each assigned resource is paid the synchronized reserve clearing price for providing the service for the hour.

Requirements
The synchronized reserve market provides a unique opportunity for competitive development and investment in demand response infrastructure. The payments to resources that clear in the synchronized reserve market are compensation for the resources to be available to response within ten minutes. Therefore, while demand response resources must install infrastructure to allow them to curtail their consumption of electricity within ten minutes, they will only be requested to curtail when system conditions require the ten minute response.

Under the current market rules, Demand Resources must provide metering information at no less then a one minute scan rate surrounding a call for Synchronized Reserves. The metering information must be uploaded to eLoadResponse within 24 hours of the event to ensure compliance. The overall participation by demand resources is currently limited to 25% of the Synchronized Reserve requirement in each Reserve Zone as PJM and Reliability First Corporation gain experience with this demand response participation. To ensure that proper reliability standards are maintained, there are mandatory training requirements for CSPs that desire to bid demand reductions in the Synchronized Reserve market.