Exploring ERCOT with Brandt Vermillion (ERCOT Market Lead @ Modo Energy)
Dec 14, 2023
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Brandt Vermillion, ERCOT Market Lead at Modo Energy, discusses the differences between ISO and RTO, constraints faced by the system, Storm Uri impact, battery buildout, and future challenges. Modo Energy provides insights for new energy assets, focusing on battery storage solutions in the market.
ERCOT oversees Texas' power flow, faces constraints during storms, and plans storage resources carefully for grid stability.
Weatherization gaps affect natural gas supply, wind turbines, and solar energy sources, adding strain to the power grid during cold spells.
During Storm Uri, ERCOT coped with high demand, natural gas limitations, and power plant failures, leading to frequency drops and blackout risks.
Deep dives
Impact of Cold Weather on Natural Gas Wells and Power Plants
The podcast episode discusses the challenges faced during cold weather events, particularly in Texas, where natural gas wells can freeze up, hindering the flow of natural gas to power plants. The lack of weatherization for cold weather conditions leads to power plants being unequipped to operate efficiently, causing some to come offline. Additionally, the high demand for heating during cold temperatures strains the power grid further.
Role of Wind Turbines and Solar Energy in Winter Conditions
The podcast highlights how wind turbines and solar energy sources are affected by winter conditions, contributing to low wind output and no solar generation during cold spells. The lack of weatherization for wind turbines impacts their efficiency, further reducing available energy sources. Combined with increased demand for heating, the absence of renewable energy adds pressure to the power grid.
Challenges Faced by ERCOT during Storm Uri
During Storm Uri in February 2021, ERCOT faced significant challenges as demand soared due to extreme cold temperatures. The limitations in natural gas supply and inadequately weatherized power plants led to failures in fuel delivery, causing power plants to run out of fuel and go offline. The coordination efforts within ERCOT, including support studies and planning for potential overloads, were crucial in addressing the complex constraints and ensuring grid stability amidst the crisis.
Tight Grid Operating Conditions on Valentine's Day
As temperature dropped to well below freezing on a Sunday night in February, grid conditions became increasingly strained due to high demand. With fewer reserves available and generators going offline due to various issues like mechanical failures and fuel supply shortages, the grid faced challenges in maintaining its frequency at 60 Hertz. The situation escalated as multiple generators had to come offline within minutes, leading to a significant drop in frequency close to 59.3 Hertz and the potential threat of a complete blackout.
Impact of ERCOT's NPR 1186 on Storage Resources
ERCOT's NPR 1186 mandates that storage resources maintain enough energy to fulfill their ancillary service obligations for the entire operating hour. While this places an additional requirement on storage resources and may limit their flexibility, it aims to ensure that resources can provide the contracted power when needed. Despite concerns about the impact on storage operations, the rule may not significantly affect the medium to long-term bottom line for storage resources, especially as their contributions to ancillary services decrease with time and energy arbitrage becomes more prominent.
The Electric Reliability Council of Texas or (ERCOT) oversees the flow of electric power to the majority of Texas. Handling over 90% of the states electric load - there is a lot that goes on behind the scenes, and what is it like when things don’t go to plan.
In this episode, Quentin sits down with Modo Energy’s ERCOT Market Lead - Brandt Vermillion. Over the course of the conversation, they discuss:
The differences between an ISO and RTO - and which one ERCOT falls into?
Common and irresolvable constraints which the system faces.
Storm Uri from the control room perspective and how it sparked change in buildout and deployment
The current state of battery buildout in ERCOT
What next for batteries, with the face of looming saturation of Ancillary Services
About Modo Energy
Modo Energy provides benchmarking, forecasts, data, and insights for new energy assets - all in one place.
Built for analysts, Modo helps the owners, operators, builders, and financers of battery energy storage solutions understand the market - and make the most out of their assets. Modo’s paid plans serve more than 80% of battery storage owners and operators in Great Britain.
To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. If you want to peek behind the curtain for a glimpse of our day-to-day life in the Modo office(s), check us out on Instagram.
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