Demand response — An assessment of load participation in the ERCOT nodal market

The purpose of the restructured power market is to obtain maximum social benefits, including power generation and load customers. Although the power generation sector has been fully participating in the power market, relatively limited market options for demand sector to participate in the power market exist. Several Independent System Operators (ISOs) have deployed several terms of Demand Response (DR) programs in the auction power market. As an “intra-state” ISO, Electric Reliability Council of Texas (ERCOT) is responsible for the electric market in Texas. During the past several years, the demand response program in ERCOT had provided promising outcomes from both economic and reliability prospective. Both the improvement of the existing program and feasibility to create new program are always ERCOT´s goal to increase the market efficiency and system reliability. Currently, demand-side resources, mainly on the industrial load class can participate into ancillary service market. To further promote demand-side response program, the market operation, regulatory intervention and special demand-side programs are needed. In addition, to meet the requirement of demand-side resource, the program may pay more attention to the commercial and residential customer in the future.