Load Resource Participation in the ERCOT Markets

Relevant Definitions from Protocol Section 2 Relevant Definitions from Protocol Section 2

Load Resource (LR)

A Load capable of providing Ancillary Service to the ERCOT System and/or energy in the form of Demand response and registered with ERCOT as a Load Resource

Aggregate Load Resource (ALR)

A Load Resource that is an aggregation of individual metered sites, each of which has less than ten MW of Demand response capability and all of which are located within a single Load Zone

Controllable Load Resource (CLR)

A Load Resource capable of controllably reducing or increasing consumption under Dispatch control by ERCOT

Market Participation Market Participation

Customers who can change their load in response to an instruction and can meet certain performance requirements may qualify to become LRs. Qualified LRs may participate in ERCOT’s real-time energy market through Security-Constrained Economic Dispatch (SCED) and/or qualify to provide any of the following Ancillary Services: ERCOT Contingency Reserve Service (ECRS),  Non-Spinning Reserve (Non-Spin), Regulation Down Service (Reg-Down), Regulation Up Service (Reg-Up) and Responsive Reserve (RRS).  

In the ERCOT markets, the value of a Load Resource’s load reduction is equal to that of an increase in generation by a generating plant. LRs in SCED submit bids to buy power "up to" their specified level and are instructed by ERCOT to reduce Load if wholesale market prices equal or exceed that level. LRs that are scheduled or selected in the ERCOT Day-Ahead AS Market are eligible to receive a capacity payment regardless of whether they are actually curtailed.

Registration and Ancillary Service Qualification Information Registration and Ancillary Service Qualification Information

Load Resources register using the Resource Integration & Ongoing Operations (RIOO) application. Instructions for setting up a RIOO user account can be found under RIOO Documentation on the Resource Integration webpage. Refer to the RIOO user guides under Key Documents below for more details.

In summary, to register a Load Resource, the LR owner and/or the Resource Entity must:

  • Register as a Resource Entity by submitting the Resource Entity Application for Registration in Section 23 of the Protocols.
  • If not already in place, designate a Qualified Scheduling Entity (QSE) responsible for market operations and financial settlement. The Section 23 Form H: QSE Acknowledgement must be submitted to ERCOT at least 45 days before the requested Production Load Date (PLD) for the LR. The QSE associated with an LR must be a qualification level 3 or 4. A level 4 QSE is required to participate in Ancillary Service markets.
  • For CLRs that want to be SCED qualified, designate a Decision Making Entity (DME) by submitting the Section 23 Form C: Managed Capacity Declaration at least 45 days before the requested PLD for the LR.
  • Complete interconnection requirements with the host Transmission and/or Distribution Service Provider (TDSP) and Meter Reading Entity (MRE).
    • Confirm the mapping location data for each Load Resource to be registered. This data is required in the RIOO submission, and it provides the necessary details for ERCOT to model the Load Resource in the correct location.
    • The “Load Resource Registration Data Request Form” under Key Documents below can be used to help the RE and the TDSP coordinate this data.  
  • Coordinate a Production Load Date (PLD) and Dispatch Asset Code (DAC) for each new LR via email with the ERCOT Demand Integration team (ERCOTLRandSODG@ercot.com).
    • The PLD will be at least 45 days after the RIOO registration submission is accurately completed and will align with a scheduled production model load as listed on the current Production Load Schedule. The PLD must be included in the RIOO submission.
      • Note that LR submissions meeting the 45-day PLD schedule do not require the RE to submit the “RE_Model_Interim_Update_Request” form.
    • The DAC will be a unique identifier provided by ERCOT and it must be included in the RIOO submission.
  • Register the LR by using the Resource Integration & Ongoing Operations (RIOO) application..

After the newly registered LR has been activated in the Network Model on the PLD submitted in RIOO, the QSE representing the LR can contact the ERCOT Demand Integration team (ERCOTLRandSODG@ercot.com) if they would like to schedule qualification testing for Ancillary Services.

Links to registration and qualification forms are provided below.


Load Resource Supporting Information

Monthly ERCOT Demand Response from Load Resources
View monthly response from load resources.
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