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Distributed Generation


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

Distributed Generation

An electrical generating facility located at a Customer's point of delivery (point of common coupling), 10 megawatts (MW) or less, and connected at a voltage less than or equal to 60 kilovolts (kV), which may be connected in parallel operation to the utility system

Generation Resource

A generator capable of providing energy or Ancillary Service to the ERCOT System and is registered with ERCOT as a Generation Resource

Distribution Generation Resource (DGR)

A Generation Resource connected to the Distribution System that is either:

    1.  Greater than ten MW and not registered with the Public Utility Commission of Texas (PUCT) as a self-generator; or
    2.  Greater than one MW that chooses to register as a Generation Resource to participate in the ERCOT markets 

Settlement Only Generator (SOG) Settlement Only Generator (SOG)

A generator that is settled for exported energy only, but may not participate in the Ancillary Services market, Reliability Unit Commitment (RUC), Security-Constrained Economic Dispatch (SCED), or make energy offers. These units are comprised of:

A generator that is connected to the Distribution System with a rating of:

    1.  One MW or less that chooses to register as an SODG; or
    2.  Greater than one and up to ten MW that is capable of providing a net export to the ERCOT System and does not register as a Distribution Generation Resource (DGR)

SODGs must be registered with ERCOT in accordance with Planning Guide Section 6.8.2, Resource Registration Process, and will be modeled in ERCOT systems for reliability in accordance with Section 3.10.7.2, Modeling of Resources and Transmission Loads

A generator that is connected to the ERCOT transmission system with a rating of ten MW or less and is registered with the Public Utility Commission of Texas (PUCT) as a power generation company. SOTGs must be registered with ERCOT in accordance with Planning Guide Section 6.8.2, Resource Registration Process, and may be modeled in ERCOT systems for reliability in accordance with Section 3.10.7.2, Modeling of Resources and Transmission Loads.

A generator that is connected to the ERCOT transmission system with a rating of one MW or more and is registered with the Public Utility Commission of Texas (PUCT) as a self-generator.  SOTSGs must be registered with ERCOT in accordance with Planning Guide Section 6.8.2, Resource Registration Process, and will be modeled in ERCOT systems for reliability in accordance with Section 3.10.7.3, Modeling of Private Use Networks.

Registration Information Registration Information

Distribution Generation Resources (DGRs) Distribution Generation Resources (DGRs)

Any DG that intends to participate in Security Constrained Economic Dispatch (SCED) or provide Ancillary Services to the ERCOT system must register as a DGR and undergo qualification testing. DGRs will follow the same registration requirements and timelines as other Generation Resources. This registration information can be found on the Resource Entity webpage and on the Resource Integration webpage.

Settlement Only Distribution Generators (SODGs) Settlement Only Distribution Generators (SODGs)

Distributed Generation with installed capacity greater than 1 MW capable of providing a net export of energy into a Distribution Service Provider’s (DSP) Distribution System is required to register with ERCOT as an SODG. Resource Entities register SODGs 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. The SODG registration process allows for energy injections to a DSP’s Distribution System to be accounted for in ERCOT market settlements. Energy from registered SODG units is settled with the SODG’s designated Qualified Scheduling Entity (QSE) per ERCOT Nodal Protocols Section 6.6. Registering an aggregation of DG units across multiple points of delivery is not allowed.

Metering and reporting of meter data are responsibilities of the host Transmission and/or Distribution Service Provider (TDSP). DG using ERCOT-Polled Settlement (EPS) meters must ensure that the host TDSP submits an EPS Metering Design Proposal to ERCOT. If a TDSP Read meter is to be used, the Resource Entity must request that the host TDSP completes a TDSP Read Generation Metering Registration Form and the form must be attached to the site registration submitted in RIOO.

In summary, to register an SODG, the SODG 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.
  • Designate a Qualified Scheduling Entity (QSE) responsible for 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 SODG. The QSE associated with an SODG can be any qualification level (Level 1 – Level 4) as it is only needed to receive settlement payments. However, if an SODG wants to participate in the Emergency Response Service (ERS) program, its QSE will have to abide by the technical requirements for ERS, including telemetry.  
  • Complete interconnection requirements with the host DSP. If the DG is on a Non-Opt-In Entity's (NOIE) Distribution System, the Resource Entity will need to coordinate with the NOIE regarding requirements to properly report the impact of the DG on the NOIE’s exchange onto the ERCOT System.
  • Complete arrangements for either ERCOT-Polled Settlement (EPS) metering or TDSP Read metering with the interconnecting DSP and submit to ERCOT:
  • Coordinate a Production Load Date (PLD) via email with the ERCOT Demand Integration team (ERCOTLRandSODG@ercot.com). This coordination is not required, but it can help ensure that the requested PLD is acceptable for modeling the SODG. 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 SODG submissions meeting the 45-day PLD schedule do not require the RE to submit the “RE_Model_Interim_Update_Request” form.
  • Register the SODG by using the Resource Integration & Ongoing Operations (RIOO) application. Attach the completed and signed TDSP Read Generation Metering Registration Form with the submission, when required. If the facility is in an area open to retail competition, include the Electric Service Identifier (ESI ID) in the registration.


Unregistered Distributed Generation Unregistered Distributed Generation

DG units with installed capacity less than or equal to the DG registration threshold (currently 1 MW), or with capacity greater than 1 MW that does not export and is registered with the PUC as a Self-Generator, do not need to register with ERCOT.

  • If the DG resource is in an area open to retail competition, DG energy injections into a DSP Distribution System will reduce the settlement load of the Retail Electric Provider associated with the ESI ID. The DSP must change the Profile Segment to the appropriate value corresponding to the type of DG.
  • DG energy injections into NOIE Distribution Systems will reduce the NOIE’s load.
  • If a generator is used solely as backup power at a facility — for example, to provide Emergency Response Service (ERS) Load response — and never injects power to the grid, registering the generator may not be required. ERCOT will review and address questions about registration of these installations on a case-by-case basis.
    • DG units that are capable of injecting power to the Distribution System may provide Emergency Response Service as an ERS Generator. Refer to the Emergency Response Service page for more information.

Settlements Settlements

All newly registered DGRs, including SOGs, will be settled based on a nodal price at the specific electrical bus to which it is mapped.

There is also a subset of SODGs and SOTGs which opted out of nodal pricing and will continue to receive Load Zone pricing through the earlier of December 31, 2029, or the date on which they choose to withdraw their election for zonal pricing or have their option revoked. Starting January 1, 2030, all SODGs and SOTGs will be subject to nodal pricing. More details are found in Protocol Section 6.6.3.9.

Real-Time prices for SODGs and SOTGs for each interval from the Security-Constrained Economic Dispatch (SCED) are posted in the two files listed below under “Real-Time Prices Reports” on the Real-Time Market webpage. Prices for a new SODG will be included in these reports starting on the PLD.

Current Information

Unregistered DG Installed Capacity Quarterly Report
This is a quarterly report on the total unregistered installed capacity of DG as specified in Protocol Section 3.2.5.3, Unregistered Distributed Generation Reporting Requirements for ERCOT.

Key Documents

Jan 23, 2023 - pdf - 457 KB
Jan 13, 2023 - pdf - 2.5 MB
Jan 13, 2023 - pdf - 1.8 MB
Jul 29, 2019 - xlsx - 145.7 KB