Operating Reserves Demand Curve Options Seen Boosting ERCOT Resource Adequacy
July 24, 2013
Additional options for setting parameters of an operating reserves demand curve (ORDC) in ERCOT would enhance resource adequacy, even at a lower minimum contingency level, according to an analysis by the Brattle Group. An earlier analysis had found that an ORDC with a minimum contingency level of 2,300 MW (and no explicit value of non-market actions) had been forecast to produce a reserve margin of 13.9 percent under a “low market response.” The latest analysis included consideration of an ORDC with a lower minimum contingency level of 1,375 MW – but also included a value of non-market actions at $7,000, and a value of lost load at $9,000. This design produced a reserve margin of up to 15.4 percent, depending on the level of market response to the ORDC. A low market response would produce a reserve margin of 12.6 percent.