Brattle Experts Analyze Potential Impacts of ERCOT’s Proposed Residential DR Program in New Report
Prepared for NRG and Google
ERCOT is experiencing dramatic load growth that is expected to exceed the pace at which conventional sources of supply can be added to the market, raising near-term concerns about system reliability. ERCOT’s proposed Residential DR (RDR) program is designed to provide Retail Electricity Providers (REPs) with a price signal to develop programs that tap into latent residential flexibility to address reliability concerns.
In a new report prepared for NRG and Google, Brattle experts analyze the extent to which the proposed RDR program is likely to increase demand response capability and the impacts the program may have on market prices. The study demonstrated that ERCOT’s proposed RDR program could lead to significant growth in demand response capability, with notable favorable design features.
Report findings include:
- Customer incentives offered by REPs could double or triple with the introduction of the RDR program.
- Increased incentives could lead to the 500 MW RDR cap being reached within a few years from residential smart thermostats, EVs, and batteries.
- ERCOT is anticipating significant demand growth and tightening of reserves through 2030.
- The RDR program allows the mobilization of dispatchable capacity in the market.
The report, “An Assessment of ERCOT’s Proposed Residential Demand Response Program,” is authored by Principals Dr. Sam Newell and Ryan Hledik; Energy Associates Kate Peters and Serena Patel; and Energy Analyst Carly McAdam and can be found below.
