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Distributed Generation


Relevant Definitions from Protocol Section 2 Relevant Definitions from Protocol Section 2

Distributed Generation

An electrical generating facility located at a Customer's point of delivery (point of common coupling), ten 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

Generation Resource

A generator capable of providing energy or Ancillary Service to the ERCOT System and is registered with ERCOT as a Generation Resource

Distribution Generation Resource (DGR)

A Generation Resource connected to the Distribution System that is either:

    1.  Greater than ten MW and not registered with the Public Utility Commission of Texas (PUCT) as a self-generator; or 
    2.  Greater than one MW that chooses to register as a Generation Resource to participate in the ERCOT markets

Settlement Only Generator (SOG) Settlement Only Generator (SOG)

A generator that is settled for exported energy only, but may not participate in the Ancillary Services market, Reliability Unit Commitment (RUC), Security-Constrained Economic Dispatch (SCED), or make energy offers. These units are comprised of:

A generator that is connected to the Distribution System with a rating of:

    1.  One MW or less that chooses to register as an SODG; or
    2.  Greater than one and up to ten MW that is capable of providing a net export to the ERCOT System and does not register as a Distribution Generation Resource (DGR) 

SODGs must be registered with ERCOT in accordance with Planning Guide Section 6.8.2, Resource Registration Process, and will be modeled in ERCOT systems for reliability in accordance with Section 3.10.7.2, Modeling of Resources and Transmission Loads

A generator that is connected to the ERCOT transmission system with a rating of ten MW or less and is registered with the Public Utility Commission of Texas (PUCT) as a power generation company. SOTGs must be registered with ERCOT in accordance with Planning Guide Section 6.8.2, Resource Registration Process, and may be modeled in ERCOT systems for reliability in accordance with Section 3.10.7.2, Modeling of Resources and Transmission Loads.

A generator that is connected to the ERCOT transmission system with a rating of one MW or more and is registered with the Public Utility Commission of Texas (PUCT) as a self-generator.  SOTSGs must be registered with ERCOT in accordance with Planning Guide Section 6.8.2, Resource Registration Process, and will be modeled in ERCOT systems for reliability in accordance with Section 3.10.7.3, Modeling of Private Use Networks.

Registration Information Registration Information

Distribution Generation Resources (DGRs) Distribution Generation Resources (DGRs)

Any DG that intends to participate in Security Constrained Economic Dispatch (SCED) or provide Ancillary Services to the ERCOT system must register as a DGR and undergo qualification testing. DGRs will follow the same registration requirements and timelines as other Generation Resources. Registrations for DGRs should follow the processes under the “Creating an INR in RIOO Interconnection Services” section of the Resource Integration webpage. Questions on these registrations should be sent to the ERCOT Resource Integration team (ResourceIntegrationDepartment@ercot.com).

Transmission-connected Settlement Only Generators (SOTGs and SOTSGs) Transmission-connected Settlement Only Generators (SOTGs and SOTSGs)

SOTGs and SOTSGs require more registration information and require a longer processing time than SODGs. Registrations for SOTGs and SOTSGs should follow the processes under the “Creating an INR in RIOO Interconnection Services” section of the Resource Integration webpage. Questions on these registrations should be sent to the ERCOT Resource Integration team (ResourceIntegrationDepartment@ercot.com).

Settlement Only Distribution Generators (SODGs) Settlement Only Distribution Generators (SODGs)

Resource Entities (REs) register SODGs using the Resource Integration & Ongoing Operations (RIOO) application. Instructions for setting up a RIOO user account can be found under RIOO Documentation on the Resource Integration webpage. Refer to the RIOO user guides under Key Documents below for more details. The SODG registration process allows for energy injections to a Transmission and/or Distribution Service Provider’s (TDSP’s) Distribution System to be accounted for in ERCOT market settlements. Energy from registered SODG units is settled with the SODG’s designated Qualified Scheduling Entity (QSE) per ERCOT Nodal Protocols Section 6.6. Registering an aggregation of DG units across multiple points of delivery is not allowed.

Metering and reporting of meter data are responsibilities of the host TDSP. An SODG using an ERCOT-Polled Settlement (EPS) meter must ensure that the host TDSP submits an EPS Metering Design Proposal to ERCOT. If a TDSP Read meter is to be used, the RE must request that the host TDSP completes a TDSP Read Generation Metering Registration Form, and the form must be attached to the site registration submitted in RIOO.

To register a new SODG, the SODG owner and/or the Resource Entity must:

  • Register as an RE by submitting the Resource Entity Application for Registration in Section 23 of the Protocols. The RE registration must be complete to be issued the ERCOT digital certificate required to setup the RIOO user account.
  • If not already in place, designate a QSE responsible for financial settlement. The Section 23 Form H: QSE Acknowledgement should be submitted to ERCOT before the RE starts the registration process for the SODG in RIOO. If the QSE is not registered when ERCOT receives the registration request, the Production Load Date (PLD) of the SODG may be delayed until the QSE Acknowledgment is complete. The QSE associated with an SODG can be any qualification level (Level 1 – Level 4) as it is only needed to receive settlement payments. However, if an SODG wants to participate in the Emergency Response Service (ERS) program, its QSE will have to abide by the technical requirements for ERS, including telemetry.
  • Complete interconnection requirements with the host TDSP. If the SODG is on a Non-Opt-In Entity's (NOIE) Distribution System, the RE will need to coordinate with the NOIE regarding requirements to properly report the impact of the SODG on the NOIE’s exchange onto the ERCOT System.
  • Complete arrangements for either ERCOT-Polled Settlement (EPS) metering or TDSP Read metering with the interconnecting TDSP and submit to ERCOT:
    • EPS metering – TDSP to complete the EPS Metering Design Proposal. Refer to the Settlement Metering Operating Guide for more information. Note that an EPS Metering Design Proposal should be submitted no less than 90 days prior to the cutover date for adding any EPS meters for settlements. The Resource ID (RID) that is required for the RIOO submission can’t be obtained until the EPS Metering Design Proposal is approved by ERCOT. 
    • TDSP-Read metering – TDSP to complete the TDSP Read Generation Metering Registration Form.
  • Coordinate a PLD via email with the ERCOT Demand Integration team (ERCOTLRandSODG@ercot.com). This coordination is not required, but it can help ensure that the requested PLD is correct in the RIOO submission.
    •  The PLD will be at least 30 days after the RIOO registration submission is accurately completed and will align with a scheduled production model load as listed on the current Production Load Schedule. The PLD must be included in the RIOO submission. 
      • Note that SODG submissions meeting the 30-day PLD schedule do not require the RE to attach the “RE_Model_Interim_Update_Request” form in RIOO.
  • Register the SODG by using the RIOO application. Attach the completed and signed TDSP Read Generation Metering Registration Form with the submission, when required. If the facility is in an area open to retail competition, include the Electric Service Identifier (ESI ID) in the registration. Refer to the RIOO user guides under Key Documents below for more details.


Updating an existing SODG (including ownership changes):

REs submit updates to existing SODGs using the Resource Services section of RIOO (RIOO – RS). Update submissions will follow the same timeline as submissions to register a new SODG. The desired PLD can be coordinated with the ERCOT Demand Integration team (ERCOTLRandSODG@ercot.com) prior to completing the submission. Coordinating the PLD is not required, but it must align with a scheduled production model load as listed on the current Production Load Schedule. Refer to the RIOO user guide under Key Documents below for more details.

  • Note that for SODGs using a TDSP-read meter, any update that impacts the mapping location, settlement meter information, or changes the RE will require an updated TDSP Read Generation Metering Registration Form. 

Registration fees (see posted ERCOT Fee Schedule on Current Protocols – Nodal webpage):

  • Fee to register a new SODG = $2,300
  • Fee to update an existing SODG:
    • $2,300 if the SODG name plate rating is increased by 1 MW or more, accumulated over a rolling 12-month period.
    • No fee for other updates.
  • No fee to stop an existing SODG or to change the owner (RE) for an SODG.
  • All fees are collected in RIOO during the submission process and must be paid before the submission can be completed.
  • Refunds of fees paid will not be considered unless ERCOT directs a change in the registration process that results in additional fees being charged.

Unregistered Distributed Generation 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.

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 TDSP Distribution System will reduce the settlement Load of the Retail Electric Provider associated with the ESI ID. The TDSP 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.
  • If a generator is used solely as backup power at a facility — for example, to provide 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 an ERS Generator. Refer to the Emergency Response Service page for more information.

Settlements Settlements

All newly registered DGRs, including SOGs, will be settled based on a nodal price at the specific electrical bus to which it is mapped. 

There is a subset of SODGs and SOTGs which opted out of nodal pricing and will continue to receive Load Zone pricing through the earlier of December 31, 2029, or the date on which they choose to withdraw their election for zonal pricing or have their option revoked. Starting January 1, 2030, all SODGs and SOTGs will be subject to nodal pricing. More details are found in Protocol Section 6.6.3.9.

  • Any SODG wanting to switch from Load Zone pricing to nodal pricing should contact the ERCOT Demand Integration team (ERCOTLRandSODG@ercot.com) to coordinate the change.
  • Any SOTG wanting to switch from Load Zone pricing to nodal pricing should contact the ERCOT Resource Integration team (ResourceIntegrationDepartment@ercot.com) to coordinate the change.

Real-Time SCED prices for SODGs and SOTGs are posted in the two files listed below under “Real-Time Prices Reports” on the Real-Time Market webpage. Prices for a new SODG or SOTG will be included in these reports starting on the PLD.

Current Information

Unregistered DG Installed Capacity Quarterly and Annual Report
These are quarterly and annual reports of the total unregistered installed capacity of DG as specified in Protocol Section 3.2.5.3, Unregistered Distributed Generation Reporting Requirements for ERCOT.

Key Documents

Nov 12, 2024 - pdf - 2.3 MB
Nov 12, 2024 - pdf - 2.1 MB
Jul 29, 2019 - xlsx - 145.7 KB