NOTICE DATE: November 17, 2023
NOTICE TYPE: M-A100223-06 Contracts / RFP
SHORT DESCRIPTION: ERCOT is Canceling the Request for Proposals for Contracts for Capacity for Winter 2023-24
INTENDED AUDIENCE: All Market Participants
DAYS AFFECTED: November 17, 2023
LONG DESCRIPTION: Effective today, ERCOT is canceling its Request for Proposals for Contracts for Capacity for Winter 2023-24 (RFP) and will not move forward with the proposed procurement.
On October 2, 2023, ERCOT issued the RFP, seeking to procure up to 3,000 megawatts (MW) of additional capacity during the Winter 2023-24 Peak Load Season. In the RFP, ERCOT sought capacity from multiple categories of Capacity Sources, including certain Generation Resources and Energy Storage Resources that were not projected to participate in the ERCOT Markets during the season and eligible Customers with peak Demand response capability equal to or greater than 1 MW that did not exhibit price-responsive behavior after December 1, 2022.
The deadline for offers in response to the RFP was Friday, November 10, 2023. ERCOT received offers from three entities totaling 30.6 MW. However, after initial evaluation, ERCOT has determined that only 11.1 MW was potentially qualified, subject to further validation of Demand response eligibility as described in the Winter 2023-24 Contracts for Capacity Governing Document.
In making the decision to cancel the RFP, ERCOT weighed factors such as the costs of the program, including costs of administration, and the incremental additional complexity for the Control Room operators against the very small amount of capacity that could be provided and the associated minimal reliability benefits. Probabilistic analysis showed that if all 11.1 MW of the potentially qualified capacity offered were procured for the entirety of the Winter Peak Load Season, there would be less than a 0.05% reduction of risk of entering an Energy Emergency Alert during the Hour Ending 8:00 AM, the highest-risk hour of the season.
ERCOT looks forward to working with the Public Utility Commission of Texas and stakeholders to evaluate lessons learned from this RFP.
CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].
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