ERCOT to Implement Key Market Design Change: Real-Time Co-optimization (RTC)

(Austin, TX) – Electric Reliability Council of Texas, Inc. (ERCOT) today announced a target go-live date of December 5, 2025, which is earlier than the originally contemplated go-live timeframe of mid-2026, for the implementation of Real-Time Co-optimization (RTC) in the ERCOT market.

RTC is the process of dispatching energy and Ancillary Services interchangeably in the Real-Time Market. Under the current market design, ERCOT procures Ancillary Services in the Day-Ahead Market and does not typically move Ancillary Services between resources in the Real-Time Market.

“The implementation of Real-Time Co-optimization is the most significant market enhancement to the Real-Time Nodal market design since its inception in 2010,” said ERCOT President and CEO Pablo Vegas. “The target go-live date represents an important milestone in ERCOT’s confidence for planning and tracking the completion of the RTC project for a more dynamic and efficient wholesale power market.”

Since the initial RTC market design program, requirements have been enhanced to include functionality changes to account for the expansion of Battery Energy Storage Resources in the ERCOT market, which expanded the project to the Real-Time Co-optimization + Batteries (RTC+B) program.

“Once implemented, these enhancements will provide operational and reliability benefits to the ERCOT system as well as estimated annual wholesale market savings in excess of one billion dollars,” added ERCOT Vice President of Commercial Operations Keith Collins. “We expect significant savings to pass down to Texas electric consumers as a result.”  

The RTC+B program has successfully completed each milestone for business requirements and interface specifications and is now positioned to begin system testing in early 2025. Market trials will commence in May and run through November 2025, with the cutover to implementation by the targeted December 5 go-live date.

ERCOT will continue to monitor additional milestones in the coming months involving ERCOT and Market Participants that will allow us to confirm the December 5, 2025, go-live date or adjust if necessary.

The RTC project was initiated in 2019 by directive of the PUCT to ERCOT following a robust assessment of the costs and benefits associated with the implementation of RTC of energy and Ancillary Services in the wholesale electricity market. Read the associated Market Notice for more information.

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