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.

DG that intends to participate in Security Constrained Economic Dispatch (SCED) or provide Ancillary Services to the ERCOT system must register as a Distribution Generation Resource and undergo qualification testing.

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 be registered with ERCOT as a Settlement Only Distribution Generator (SODG). Resource Entities register DG using the  Resource Asset Registration Form (RARF). The DG registration process allows for energy injections to a DSP’s Distribution System to be accounted for in ERCOT market settlements. Registering an aggregation of DG units across multiple points of delivery is not currently allowed. Energy from registered SODG units is settled with the SODG’s designated Qualified Scheduling Entity (QSE) per ERCOT Nodal Protocols section 6.6.

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 request 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 is capable of injecting energy into 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 in Section 23 of the Protocols.
  • Designate a QSE responsible for financial settlement
  • Complete arrangements for either EPS metering or TDSP Read metering with the interconnecting Distribution Service Provider (DSP) and submit to ERCOT:
  • Register the DG by submitting the Resource Asset Registration Form (SODG form section). If the facility is in an area open to retail competition, include the Electric Service Identifier (ESI ID) on the form.

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 ERS Generator(s). Refer to the Emergency Response Service page for more information.

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.

Current Information