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Demand participation in the restructured Electric Reliability Council of Texas market

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  • Zarnikau, Jay W.

Abstract

Does an electricity market which has been restructured to foster competition provide greater opportunities for demand response than a traditional regulated utility industry? The experiences of the restructured Electric Reliability Council of Texas (ERCOT) market over the past eight years provide some hope that it is possible to design a competitive market which will properly value and accommodate demand response. While the overall level of demand response in ERCOT is below the levels enjoyed prior to restructuring, there have nonetheless been some promising advances, including the integration of demand-side resources into competitive markets for ancillary services. ERCOT's experiences demonstrate that the degree of demand participation in a restructured market is highly sensitive to the market design. But even in a market which has been deregulated to a large degree, regulatory intervention and special demand-side programs may be needed in order to bolster demand response.

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  • Zarnikau, Jay W., 2010. "Demand participation in the restructured Electric Reliability Council of Texas market," Energy, Elsevier, vol. 35(4), pages 1536-1543.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:4:p:1536-1543
    DOI: 10.1016/j.energy.2009.03.018
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    1. Caves, Douglas & Eakin, Kelly & Faruqui, Ahmad, 2000. "Mitigating Price Spikes in Wholesale Markets through Market-Based Pricing in Retail Markets," The Electricity Journal, Elsevier, vol. 13(3), pages 13-23, April.
    2. Zarnikau, Jay & Hallett, Ian, 2008. "Aggregate industrial energy consumer response to wholesale prices in the restructured Texas electricity market," Energy Economics, Elsevier, vol. 30(4), pages 1798-1808, July.
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