ABB software managing ERCOT wholesale market

ERCOT Nodal Electricity Market enables faster pricing and scheduling via ABB MMS, improving reliability, transparency, and congestion management across the Texas grid, integrating wind resources and delivering substantial cost savings through efficient, real-time dispatch.

ABB’s Network Manager Market Management System MMS is now being used to administer the wholesale power market for the Electric Reliability Council of Texas ERCOT.

The software has enabled ERCOT, which operates and manages the flow of electrical power to 22 million customers, to establish a nodal electricity market, bringing substantial improvements in operational efficiency, reliability and market economics, as evidenced by smart grid benefits observed across the utility sector.

The nodal electricity market system, which went live on December 1, 2010, provides considerable advantages over the zonal system previously used by ERCOT. Under the management of ABB’s MMS, which is fully compatible with existing third-party systems, including advanced metering systems deployed by regional utilities, the new market system will deliver more rapid and detailed electricity price calculations and scheduling, enabling more effective management of electricity supply and demand. The operational improvements are expected to yield improved transparency in the electricity market and, together with smart metering in Texas initiatives across utilities, substantial cost savings, in the order of $5 billion, over the next 10 years.

“We are pleased to see the new nodal market up and running, and are proud of the contribution MMS has made,” said Jens Birgersson, head of ABB’s Network Management business unit. “This is an excellent example of how a well-thought-out market system can improve reliability and reduce costs.”

ABB’s MMS solution is the key technology in ERCOT’s new nodal market, and complements ABB’s SCADA expertise in large US grids as well. It interfaces with supplementary systems, such as congestion revenue rights, network model management systems and credit monitoring, to ensure a robust, transparent and efficient electricity market. MMS is expected to improve the coordination of 550 generating units in the state, drawing on hydro plant monitoring experience from other deployments to enhance visibility across assets. The system will ensure that demand is met cost-effectively and that renewable generation resources are fully integrated into the system. Texas has the largest installed wind power capacity in the US, and the nodal system, with its rapid response rates, is well equipped to accommodate the unpredictable nature of this renewable energy source.

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