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Texas Advanced Energy Group Criticizes Requirement That DERs Interact With ERCOT Market Through REPs
November 13,2019 The Texas Advanced Energy Business Alliance issued a report which claimed various savings from increased deployment of distributed energy resources in ERCOT The group blamed the requirement for DERs to rely on an LSE to access the ERCOT market for lack of DER penetration in ERCOT "Most smaller DERs cannot bid directly into the energy markets, even when aggregated, and are limited to participating indirectly as load modifying demand via a Transmission or Distribution Service Provider (TDSP). TDSP resources are not incorporated into the energy market supply stack and are only dispatched under emergency conditions. A third party capable of operating a virtual power plant by controlling connected DERs is unable to bid into ERCOT unless they are a load-serving entity or partner with one," a report prepared for the group said "More value can be delivered if they can respond and be compensated during price spikes. To date, participation by DER resources is limited and third-party providers are unable to deliver resources independently. Texas consumers would benefit substantially, saving billions of dollars, by better integrating DER resources into the energy supply stack," a report prepared for the group said A report prepared for the group said adding 1,000 MW of DER resources into the supply stack (less than 1.2% of peak load) can decrease electricity costs for Texas consumers by $3.02 billion over 10 years if those resources can deliver reductions when prices spike. See the report here
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