Load Resource Participation in the ERCOT Markets

Customers who are capable of changing their load in response to an instruction and can meet certain performance requirements may qualify to become Load Resources (LRs).  Qualified LRs may participate in ERCOT’s real-time energy market (Security-Constrained Economic Dispatch, or SCED) and/or may provide operating reserves in the ERCOT ancillary services (AS) markets.  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.  Load Resources 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.  Load Resources that are scheduled or selected in the ERCOT Day-Ahead AS Markets are eligible to receive a capacity payment regardless of whether they are actually curtailed.

A Load Resource needs to register with ERCOT as a Resource Entity and must be represented in the ERCOT markets by a Qualified Scheduling Entity. Links to registration and qualification forms are provided below.