ERCOT drops plans to add 3 GW for winter reliability after ‘zombie’ power plants fail to bid

AI generated summary

The Electric Reliability Council of Texas (ERCOT) has canceled its plans to procure up to 3,000 MW of capacity to ensure reliability this winter after no power plants were willing to provide the additional operating reserves. Despite canceling the request for proposals, ERCOT stated that it does not expect energy emergency conditions this winter season. The canceled procurement was intended as an extra precautionary measure. Experts suggest that demand reductions and energy efficiency could provide a cheaper and more stable solution for the Texas grid than building new generation sources.

ERCOT canceled the request due to the limited response from the market, as well as concerns about cost and the grid operator's authority to acquire additional capacity without authorization from the Public Utility Commission of Texas. Commissioner Will McAdams expressed concern about potential costs and the grid operator's authority in a memo. Experts believe that regulators and the grid operator should focus on energy efficiency and demand response, both of which can be developed faster than new power plants. Overall, ERCOT will continue to explore demand resources and advance its winter preparedness through various reliability programs and tools.