If I Ever Lose My Faith In You - Texas Turns to Performance Credit Mechanism to Boost ERCOT Reliability

RBN Energy Blogcast

In Texas, rising power demand, increasing dependence on variable-output renewables, and declining availability of dispatchable fossil-fired plants to back up wind and solar have left the Electric Reliability Council of Texas (ERCOT) power grid in a pickle. As part of its response, the Public Utility Commission of Texas (PUCT) adopted a tool called the Performance Credit Mechanism (PCM) to help ensure the grid will be able to meet a yet-to-be-defined reliability standard. But while key metrics for the PCM have been identified, the details will determine which dispatchable resources will be supported with additional revenue, how much the whole approach will cost, and how effective it might be. In today’s RBN blog, we explore the debate ahead of the PUCT’s August 29 meeting — where it is expected to finalize rules around the PCM — and explore the difficulty of compensating generators annually so that they are also there for those once-in-10-year events.