Integration of Wind Generation Into the ERCOT Market

Abstract

This paper examines the market rules implemented within the Electric Reliability Council of Texas (ERCOT) zonal and nodal market designs related to the integration of wind generation. Currently, there is almost 10 000 MW of wind generation installed and operating in the ERCOT market. Total ERCOT summer peak load is in excess of 65 000 MW and wind generation penetration has exceeded 25% on several instances. This paper discusses the various rules and market mechanisms put in place to effectively deal with a high penetration of variable wind generation while maintaining adequate system reliability and creating proper market price signals for wind generation. Specifically, the paper includes treatment of wind generation in both the zonal and nodal markets, including day-ahead markets and real-time operations and describes the actual market outcomes which have been realized through several years of increasing penetration of wind generation on the ERCOT system.