ERCOT officials predict the change could lead to more than $1 billion in market savings annually. The modifications also will improve how ERCOT’s automated systems consider batteries and their state of charge for grid operational purposes.
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Learn about key ERCOT terms and concepts from this OCSC glossary and primer, which is available on the website.
The Electric Reliability Council of Texas, the state’s primary grid operator, has announced the launch this month of Real-Time Co-optimization Plus Batteries (RTC+B), a market redesign intended to provide a more efficient way to procure energy and energy capacity.
ERCOT officials predict RTC+B could lead to more than $1 billion in market savings annually. The modifications also will improve how ERCOT’s automated systems consider batteries and their state of charge for grid operational purposes.
“Real-Time Co-optimization Plus Batteries represents the most substantial enhancement to the Real-Time Nodal market design since its inception in 2010,” said Pablo Vegas, ERCOT President and CEO. “The implementation of this program marks a significant step forward toward more efficient markets and improved grid reliability.”
ERCOT will benefit from operational improvements by using resources more effectively, including:
- More timely procurement and management of Ancillary Services (for more about Ancillary Services see the regulatory glossary, here).
- Better management of transmission congestion.
- Reduction in manual actions and commitments by operators.
- Modeling batteries as a single device to more effectively dispatch stored energy within the market.
- Replacing inefficient supplemental reserve markets.
ERCOT’s RTC+B Task Force (RTCBTF) worked with stakeholders to conduct testing and market trials before the new system went live on Dec. 5. ERCOT also launched a series of training videos to explain key changes to business processes and systems resulting from the market overhaul.
The Real-Time Co-optimization (RTC) project was initiated in 2019 through a PUC directive. With the expansion of Battery Energy Storage Resources in the ERCOT market, the RTC project expanded to the RTC+B program.
The completion of the RTC+B program meets the requirements of the Public Utility Commission of Texas (PUCT) Project No. 48540, Review of Real-Time Co-optimization in the ERCOT Market.
To find out more about Real Time Co-Optimization, see the fact sheet here.