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Distributed Generation

Distributed Generation (DG) is 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.

Distributed Generation with installed capacity greater than 1 MW, which exports energy into a Distribution Service Provider’s (DSP) Distribution System, is required to be registered with ERCOT. Resource Entities register DG using the Resource Asset Registration Form (non-modeled-gen-form section). The DG registration process allows for energy injections to a DSP’s Distribution System to be accounted for in ERCOT market settlements. DG is associated with a single Premise and aggregation of DG resources across multiple Premises is not allowed. Energy from registered DG units is settled at the Load Zone Settlement Point Price.

If a generator is used solely as backup power to affect 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 may provide Emergency Response Service as ERS Generator(s). Refer to the Emergency Response Service page for more information.

Metering and reporting of meter data are responsibilities of the host Transmission and/or Distribution Service Provider (TDSP). DG using ERCOT Polled Settlement Meters (EPS) 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 ensure that the host TDSP completes a TDSP Read Generation Metering Registration Form. The Resource Entity submits this form to ERCOT along with the Resource Asset Registration Form.

In summary, if the DG is greater than 1 MW and will inject energy onto the interconnecting DSP’s Distribution System, the DG owner and/or the Resource Entity must:

  • 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.
  • Register as a Resource Entity by submitting the Resource Entity Application for Registration.
    • Designate a Qualified Scheduling Entity responsible for financial settlement
  • Complete arrangements for EPS metering or TDSP Read metering with the interconnecting Distribution Service Provider (DSP).
    • EPS metering - DSP to complete the EPS Metering Design Proposal. Refer to the Settlement Metering Operating Guide for more information.
    • TDSP Read metering - Request TDSP Read Generation Registration Form from the DSP and submit to ERCOT.
  • Register the DG by submitting the  Resource Asset Registration Form (non-modeled-gen-form section). If the facility is in an area open to retail competition, include the Electric Service Identifier (ESI ID) on the form.

Unregistered Distributed Generation:

DG installations with installed capacity of less than or equal to the DG registration threshold [currently 1 MW] 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.

Current Information