ERCOT Recommends Allowing Non-LSE QSEs To Participate In Aggregated Distributed Energy Resource (ADER) Pilot Under New Model, Also Expanding Pilot Caps

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ERCOT has proposed significant changes to the Aggregated Distributed Energy Resource (ADER) Pilot program, allowing non-load serving entities (non-LSEs) to participate as aggregators. This new model will enable aggregations of sites that cannot follow SCED basepoints to provide Ancillary Services, including ERCOT Contingency Reserve Service (ECRS) and Non-Spinning Reserve (Non-Spin). Additionally, ERCOT plans to increase the capacity limits to 160 MW for energy and 80 MW for Non-Spin and ECRS, aiming to enhance participation and customer engagement.

The proposed Phase 3 of ADER will facilitate a new participation model similar to the Non-Controllable Load Resource (NCLR) model, allowing third-party Qualified Scheduling Entities (QSEs) to aggregate premises over 100 kW, regardless of their Load Serving Entity affiliation. This change is expected to improve market access and streamline the process for aggregating devices and premises. As of May 2025, three ADERs are qualified, with additional ones in various stages of registration, reflecting growing interest in the pilot program.