Market Alerts

ERCOT announced a target go-live date of December 5, 2025, which is earlier than the originally contemplated go-live timeframe of mid-2026, for the implementation of Real-Time Co-optimization (RTC) in the ERCOT market.

“The implementation of Real-Time Co-optimization is the most significant market enhancement to the real-time nodal market design since its inception in 2010,” ERCOT President and CEO Pablo Vegas said in a statement. “The target go-live date represents an important milestone in ERCOT’s confidence for planning and tracking the completion of the RTC project for a more dynamic and efficient wholesale power market.”

Real-time optimization, or RTC (Real-Time Co-optimization), involves using the least costly resources first to meet energy demand and ancillary services.

In a  report,  ERCOT states it has completed an analysis of the RTC+batteries program schedule and is now targeting a Dec. 5, 2025, launch. The project originally aimed to go live in mid-2026, to resolve reliability concerns associated with delays in procuring “infeasible or insufficient” ancillary services.

Previously, ERCOT had contemplated that RTC implementation would occur in mid-2026.

“The target go-live date represents an important milestone in ERCOT’s confidence for planning and tracking the completion of the RTC project for a more dynamic and efficient wholesale power market,” said ERCOT President and CEO Pablo Vegas.”

ERCOT noted that, “Since the initial RTC market design program, requirements have been enhanced to include functionality changes to account for the expansion of Battery Energy Storage Resources in the ERCOT market, which expanded the project to the Real-Time Co-optimization + Batteries (RTC+B) program.”

“Once implemented, these enhancements will provide operational and reliability benefits to the ERCOT system as well as estimated annual wholesale market savings in excess of one billion dollars,” said ERCOT Vice President of Commercial Operations Keith Collins. “We expect significant savings to pass down to Texas electric consumers as a result.”

ERCOT said, “The RTC+B program has successfully completed each milestone for business requirements and interface specifications and is now positioned to begin system testing in early 2025. Market trials will commence in May and run through November 2025, with the cutover to implementation by the targeted December 5 go-live date.”  “The RTC+B program involves key interdependencies and milestones for the path forward to go live in late 2025.”

“ERCOT will continue to monitor additional milestones in the coming months involving ERCOT and Market Participants that will allow us to confirm the December 5, 2025, go-live date or adjust if necessary.” 

As background, PUC Project No. 48540 addressed implementation of Real-Time Co-Optimization in the ERCOT Market. This section contains work products from the Real-Time Co-Optimization Task Force (RTCTF) which is responsible for market design details. The RTCTF is a non-voting body that reports directly to the ERCOT Technical Advisory Committee (TAC). RTCTF is responsible for developing the necessary policy principles to implement a Real-Time Co-Optimization (RTC) design in the ERCOT market that aligns with Public Utility Commission of Texas (PUC) Project No. 48540, Review of Real-Time Co-Optimization in the ERCOT Market. RTCTF is also responsible for reviewing draft Revision Requests (RRs) prepared by ERCOT to implement RTC policy principles. The first phase and objective (Phase I) of RTCTF is to: (a) establish the key policy principles that establish the scope of the RTC project and will be used to develop the ERCOT rules, and (b) identify policy issues that are beyond the scope of the RTC project. The second phase and objective (Phase II) of RTCTF is to review the draft RRs prepared by ERCOT for implementation of the policy principles established in Phase I.

The RTC project was initiated in 2019 by directive of the PUCT to ERCOT following a robust assessment of the costs and benefits associated with the implementation of RTC of energy and Ancillary Services in the wholesale electricity market.

Read the associated Market Notice for more information.

ERCOT News Release  (09/13/2024)