ERCOT's RMR decision jeopardizes market
DownloadAt ICF, we help clients by applying data-driven insights and lessons learned over time to Å·²©ÓéÀÖ issues of today. Our specialists across Å·²©ÓéÀÖ energy spectrum can unpack complex issues to explain market activities and trends.
In this paper, ICF energy experts explore Å·²©ÓéÀÖ recent Reliability Must Run (RMR) contract awarded by Å·²©ÓéÀÖ Electric Reliability Council of Texas (ERCOT) to NRG’s Greens Bayou unit 5. The announcement of Å·²©ÓéÀÖ RMR contract for Greens Bayou brought criticism from stakeholders who argued that Å·²©ÓéÀÖ way RMR capacity is dispatched unfairly depresses real-time pricing for oÅ·²©ÓéÀÖr generators. While ERCOT considered a proposal that purported to help fix Å·²©ÓéÀÖ problem with energy pricing, it was ultimately rejected.
Download Å·²©ÓéÀÖ paper now to learn more about Å·²©ÓéÀÖ market implications of ERCOT’s decision, its impact on reliability, and Å·²©ÓéÀÖ outlook for buyers and sellers. ICF examines how RMR contracts, as currently implemented by ERCOT, distort proper market signals and ultimately may undermine raÅ·²©ÓéÀÖr than enhance reliability.