News Release

June 04, 2020

New resources growing in Texas; informational tools explain how DG and DR are used in the ERCOT region

AUSTIN, TX, June 4, 2020 – As Distributed Generation (DG) and Demand Response (DR) continue to play a larger role in ERCOT, it is becoming increasingly important that the grid operator understand how these resources complement other resources and support grid reliability.

To help with this effort, ERCOT has published an easy-to-read explainer document and accompanying video on how DG and DR are used in the ERCOT region. These new tools are available on on the Distributed Generation web page.

"All generation resources provide great value to the grid, and our goal is to ensure these newer resources can participate in the ERCOT market and help provide reliable electric service to Texans," said ERCOT’s Director of Grid Coordination Bill Blevins.

Since they are typically in close proximity to consumers, DGs can help serve load at the distribution level during emergency conditions, storms or when there are local electric delivery issues. Additionally, dispatchable DGs such as natural gas generators and batteries are flexible resources, which can complement electric systems that operate with higher amounts of intermittent resources.

Both DG and DR can help reduce net consumer demand at a customer’s particular location if needed.

ERCOT’s competitive wholesale market continues to attract a diverse generation fleet that has yielded significant benefits for consumers, and provided increased efficiency for the grid operator. As more options become available to consumers, ERCOT remains focused on monitoring and integrating these new technologies so consumers can continue to take advantage of them while supporting grid reliability.

The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 26 million Texas customers -- representing about 90 percent of the state’s electric load. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 46,500 miles of transmission lines and 650+ generation units. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for nearly 8 million premises in competitive choice areas.

ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. Its members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.