GCPA Conference Examines the Biggest Change to ERCOT Market in 15 Years

James Downing | Source: RTO Insider | Posted 04/16/2025

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HOUSTON — ERCOT this December will begin implementing a market design change that has been debated for more than a decade, experts said at the Gulf Coast Power Association’s Annual Spring Conference on April 14.

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The Gulf Coast Power Association's Annual Spring Conference highlighted significant changes coming to the ERCOT market, with the implementation of real-time co-optimization (RTC) set to begin in December. This new market design, which has been in discussion for over a decade, aims to enhance the efficiency of energy and ancillary services by allowing ERCOT's economic dispatch to solve for both simultaneously. Experts estimate that this change could save the grid billions annually, with potential savings ranging from $2.5 billion to $6.4 billion, particularly with the integration of battery storage.

As ERCOT prepares for this transition, it will conduct market trials starting in May, leading up to the official launch on December 5. The new design will also introduce a lower offer cap in energy markets, which is expected to influence price formation and encourage resource investments. Industry experts believe that the RTC+B model will not only reduce overall energy costs but also align market prices more closely with actual demand, ultimately benefiting consumers and the market as a whole.

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GCPA Conference Examines the Biggest Change to ERCOT Market in 15 Years

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