The big topic today was nodal pricing of load resources. ERCOT (Sai Moorty) presented a deck outlining the issues that he sees with giving nodal prices to load resources and where ERCOT stands on the issue currently. ERCOT is currently focusing on implementing this for large single site resources. This effort will not be directed at the charging side of batteries, aggregated load resources, or other load resources. More details in the notes below.
The second topic of interest were case studies showing predicted outcomes from NPRR1111 (Wind resources behind Generic Transmission Constraints need to follow basepoints). ERCOT models showed that NPRR111 should greatly improve their control of GTCs and enable them to control to limits closer (95% vs 85%) to the actual limit.
Also, ERCOT presented the 2022-2024 CRR calendar and re-presented the NPRR867 Analysis that they had presented at the last CWG MCWG meeting.
Nodal prices for Load Resources. The first big takeaway from this presentation was that ERCOT is currently only considering this change for large, single site, Controllable Load Resources (CLRs). A second takeaway is that there is a possible problem if this significantly increases the number of bidding Resource Nodes in the system. Current software/hardware is nearing the limit of what it can handle in terms of performance. Distributed Generation will only add to the number of Resource Nodes, so this might be a problem even without CLR resource nodes. The third big takeaway is that for situations where load resources and generation resources are inherently co-located, ERCOT is currently holding a principle that the settlement $ should net the same under any proposed design as they would if the two resources were not co-located. They don’t appear to be extending this principle to 4CP, however. Finally, there remain a lot of issues still very open (do load resources have to file outages in the outage scheduler? How should the planning process adjust to large flexible load, etc.)