How ERCOT’s upcoming RTC+B program could unlock new value streams for storage

AI generated summary

ERCOT is set to launch the Real-Time Co-optimization plus Batteries (RTC+B) program in December, which aims to transform the economics of battery storage in Texas. This initiative will enable the simultaneous optimization of ancillary services and energy in real-time, allowing batteries to be recognized as flexible assets rather than just generation or load. Currently, batteries face limitations in their ability to switch between charging and discharging, leading to missed revenue opportunities and penalties. RTC+B seeks to alleviate these issues by allowing batteries to be dispatched based on real-time grid conditions, enhancing their operational efficiency.

According to Jay Jayasuriya from Sendero Consulting, the new model will reduce risks and improve profitability for battery operators, particularly for colocated and behind-the-fence assets. Facilities with onsite storage, such as data centers, will benefit from the ability to strategically discharge during peak pricing and avoid demand charges. The flexibility introduced by RTC+B is expected to stimulate investment and innovation in battery technology. However, developers must participate in market trials before the rollout to ensure their systems are prepared for the upcoming changes.