Dive Brief In blow to some battery operators, Texas maintains non-spin reserve threshold

AI generated summary

Texas regulators have decided to maintain the four-hour minimum duration and real-time state of charge requirement for non-spin reserve resources, disappointing some battery energy storage system (BESS) operators who were hoping for a reduction. The Public Utility Commission of Texas approved this rule on July 31, despite opposition from stakeholders and a recommendation from the independent market monitor to lower the requirement to one hour. This decision is expected to favor gas peaker plants owned by independent power producers while potentially pushing some BESS operators out of the Texas market.

While the four-hour requirement is seen as unfavorable for BESS operators, analysts suggest that the overall impact may be mitigated by other less contentious changes to the protocol. For instance, the duration requirement for resources in the ERCOT Contingency Reserve Service has been reduced from two hours to one hour, allowing shorter-duration energy storage systems greater access. The commission is expected to revisit the four-hour requirement and other duration changes about a year after they take effect on December 5, coinciding with the launch of the Real-Time Co-optimization plus Batteries program, which aims to optimize battery energy and ancillary services.