ERCOT Enters New Era of Planning to Meet Future Economic Growth

(Austin, TX) – With Texas experiencing continued economic and population growth, ERCOT today announced the need to adapt and plan differently to meet future electricity demand (load) on the grid. ERCOT’s New Era of Planning focuses on ensuring all areas of system planning – from generation and load interconnections to transmission development – can adapt to better serve the needs of the rapidly growing Texas economy. This effort was unveiled by ERCOT President and CEO Pablo Vegas at today’s ERCOT April Board of Directors (BOD) meeting, detailing the challenges and opportunities ahead.

“As a result of Texas’ continued strong economic growth, new load is being added to the ERCOT system faster and in greater amounts than ever before,” said ERCOT President and CEO Pablo Vegas. “As we develop and implement the tools provided by the prior two legislatures, ERCOT is positioned to better plan for and meet the needs of our incredibly fast-growing state.”   

While the growth picture is significant and will present challenges, Vegas pointed out that it will also be a tremendous opportunity for future energy investment in Texas. It will also encourage flexibility and agility of the ERCOT market design as it evolves and adapts, positioning ERCOT as a significant component of the economic engine driving the national economy.

With an estimated additional 40,000 MW of load growth by 2030 as compared to last year’s forecast, the focus will ensure efficient and innovative approaches in planning are leveraged to prepare the ERCOT market for this accelerated growth. While it is going to take time to implement the valuable tools enabled by prior legislative sessions, Vegas noted that all the key stakeholders are aligned in supporting this economy-driven growth while simultaneously bolstering the grid’s reliability and resiliency.

ERCOT’s current suite of tools and programs includes weatherization standards and inspections, scheduled maintenance planning approvals, Fast Frequency Response Service (FFRS), and Firm Fuel Supply Service (FFSS). The PUCT is administering the start of the Texas Energy Fund, aimed at incentivizing the rapid development of new, dispatchable energy supply in the ERCOT market. ERCOT is also working with stakeholders to develop additional tools to support improved reliability and market efficiency, including Real Time Co-Optimization, a Performance Credit Mechanism (PCM), Dispatchable Reliability Reserve Service (DRRS), and the establishment of a new Reliability Standard for ERCOT.

To view the full New Era of Planning presentation from ERCOT’s April BOD meeting, click here.

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