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Texas Bill Would Require ERCOT To Remove Barriers To ADERs; Allow Larger ADERs To Participate In Wholesale Energy Market
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HB 3346 has been introduced in the Texas House that would require the Texas PUC to make the aggregate distributed energy
resource pilot project (Project 53911) a formal program
Under such, HB 3346 would further require ERCOT to:
(A) increase participation in the ADER program by:
(i) eliminating capacity- and load
zone-based limitations;
(ii) allowing for the participation of an
aggregated distributed energy resource in the wholesale energy
market if the resource has a capacity of 160 megawatts or less and
complies with all applicable commission requirements;
(iii) allowing for the participation of an
aggregated distributed energy resource in the ancillary services
market if the resource has a capacity of 80 megawatts or less and
complies with all applicable commission requirements; and
(iv) allowing for the participation in the
wholesale energy and ancillary services markets, without
security-constrained economic dispatch restrictions, of load
resource types that respond to demand response instructions with
blocks of demand; and
(B) incorporate aggregated noncontrollable load
resources into the program's governing documents; and
The bill does not specifically address the entities permitted to operate ADERs or which entities would be authorized to offer ADERs into the relevant ERCOT market or program (e.g. requiring entities which offer ADERs into ERCOT to be LSEs)
The bill also addresses various matters related to distributed energy resources, including a provision that requires that the PUC shall, "ensure that owners of distributed energy resources
are fairly compensated for contributions to grid resilience,
including through retail tariffs or other market mechanisms, with
compensation that reflects the locational and temporal value of the
resources[.]"
The bill does not prescribe in what manner the PUC shall accomplish such (e.g mandated compensation from REPs or another entity to DERs)
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Would Require That DERs Are "Fairly Compensated" For Grid Resilience
February 25, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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