This market driver alert (MDA) investigates four factors that contributed to high real-time pricing on June 20, 2023, in ERCOT.
ERCOT’s summer operations were tested in June 2023 when a prolonged heat wave settled over the state of Texas. The grid fared relatively well during a couple weeks of more than 75 GW peak loads, but on June 20, 2023, grid conditions got tight as net load peaked at 64.3 GW. Real-time (RT) settlement point prices (SPP) at North Hub peaked at $5,070.93/MWh.
What drove prices so high? Low generation available to real-time security constrained economic dispatch (SCED) required the clearing of energy offers from battery capacity with ultra-high offer prices.
Figure 1: Daily SCED real-time ESR energy offers by price level, April 2023, MW
In our MDA, we investigate:
Energy storage resource (ESR) offers and capacity
Capacity available to participate in the real-time market
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