Resource Adequacy Challenges in Texas: Unleashing Demand-Side Resources in the ERCOT Competitive Market

Date Published: May 2020

Authors: Alison Silverstein

This report reviews the efficiency and effectiveness of the ERCOT electricity market design, including its ability to continually meet the region’s rapidly growing demand while shifting from fossil generation to higher levels of variable renewable energy. The report argues in support of the ERCOT model, demonstrating its recent success in providing reliable service and attracting investment. It synthesizes a review of the ERCOT market, discusses upcoming challenges to the system (such as increasing variable renewable generation, integration of distributed energy resources (DERs), and the impacts of climate change) and provides recommendations for integrating DERs and demand-side resources to de-risk ERCOT market into the future.

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