Summer 2023

If the cushion between available electric generation supply and customer use gets too small, ERCOT may seek conservation to help increase its operating reserves. ERCOT may issue a Voluntary Conservation Notice or Conservation Appeal asking Texas businesses and residents within the ERCOT region to help reduce demand. Check with your local retail electric provider if you aren’t sure if you are part of the ERCOT grid.

Typically, tight grid conditions can be caused by a variety of factors, including high electric use combined with low renewable output (wind and solar) and/or high generation outages. Unexpected changes in the forecast for energy use or weather can also create the need for energy conservation.

A Voluntary Conservation Notice is a call for Texans to voluntarily reduce energy usage during peak demand periods, if safe to do so. Conservation is a common tool used throughout the industry to support grid reliability. As ERCOT continues to monitor conditions, forecasts may determine the need for ERCOT to issue a Voluntary Conservation Notice.

A Conservation Appeal is an elevated request for Texans to reduce their energy use during peak demand periods when there is a potential to enter emergency operations due to lower reserves. Help from Texans to conserve electricity use, if safe to do so, will assist grid reliability.

Conservation does help grid operators worldwide. ERCOT has seen time and time again that small actions to conserve electricity make a big difference. The amount of energy saved depends on the type of situation. In the last two years, voluntary conservation by Texans has reduced energy use by approximately 500 MW each time. Since ERCOT doesn’t have meters on the businesses and residents, it can be hard to calculate the exact number of megawatts reduced, but the impact is evident on the demand curve when conservation actions are taken.

The length of conservation depends on the forecasted grid conditions, which include demand, weather, generation output, and generation outages. In the past, they have ranged from hours on a single day to multiple days.

Recent calls for conservation have lasted for a few hours during peak demand time (i.e., August 20 from 7 to 10 p.m. and August 27 from 4 – 9 p.m.).

In some cases, localized conservation may be needed to balance supply and customer demand. In 2016, a localized request for conservation occurred in the Rio Grande Valley (RGV).

It’s an effective way to increase the operational reserve margin between available electric supply and customer use.

ERCOT works in coordination with the Public Utility Commission and state leadership to issue a Voluntary Conservation Notice or a Conservation Appeal. External communication channels include news releases, social media, ERCOT’s Texas Advisory and Notification System (TXANS), ERCOT.com, and the ERCOT mobile app. ERCOT also communicates directly with Market Participants and encourages them to amplify its messages.