- ERCOT has announced a major overhaul of the electricity market
- To redesign Texas electricity market structure
The Texas Electricity Reliability Council of Texas (ERCOT) has announced an overhaul of the states electricity market. The market redesign is ongoing, and changes are being made to improve the reliability of the grid. Officials warn that Texans should expect more energy conservation requests.
According to the Public Utilities Commission (PUC), the previous ‘crisis-based model’ operated in the sector saw electricity generators make gains during times of scarcity; the redesign of the market will overturn that model. The Chairman, PUC Peter Lake, stated that the Texas grid will now purchase more electricity reserves in response to scarcity. ”And that’s happening now. That makes the grid more reliable for this summer. And in the meantime, we’re working on redesigning the market structure, so we don’t run into those market incentive problems in the future.”
Officials say Texans should expect more energy conservation requests as temperatures soar. The Chief Executive Officer (CEO) ERCOT, Brad Jones, has said, ”We also were able to translate best practices that we have learned from other facilities,” he said. ”So, we’re able to communicate with them to review that they’ve met their own emergency operation plans, as well as improve those plans overall,”
The full market redesign is likely to drag on as stakeholders provide input on new rules. There are also questions about how a proposed “clean electricity standard” at the federal level could impact the Texas grid.