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ERCOT Proposes One-Time Incentive Payment To QSEs Representing Legacy Storage Resources To Spur Legacy Resources' Implementation Of Advanced Grid Support Capability; Costs Allocated To Load
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ERCOT has filed a new Nodal Protocol Revision Request, NPRR 1333, which would create a one-time incentive payment program that would pay the QSEs of energy storage resources (ESR) currently grandfathered from the requirement to have advanced grid support capability to undertake upgrades in order to be capable of offering advanced grid support
The incentive payments would also be open to other Inverter-Based Resources (wind, solar) to prompt such to implement advanced grid support capability
Under recent protocol changes, new Energy Storage Resources (ESRs) must provide advanced grid support
ERCOT in NPRR 1333 said that approximately 50 GW of existing ESRs are currently exempt from the new requirement to have the capability to offer advanced grid support
ERCOT also seeks to incent other Inverter-Based Resources (IBRs), which would not otherwise be required to provide advanced grid support, to implement advanced grid support
Under NPRR 1333, the incentive payment to the QSEs for IBRs not otherwise required to provide advanced grid support would be calculated by multiplying the awarded IBR’s availability factor by its nameplate rating in MW and then multiplying that value by the unit price of $1,500 per MW.
An availability factor of one is assigned if the awarded IBR maintains an availability of greater than 90% during the first 12 months after implementation of advanced grid support. The availability factor decreases linearly between one and zero if the awarded IBR’s availability is below 90% during the first 12 months. For instance, a factor of 0.5 is assigned when availability is at 45%.
The total awards shall not exceed $25 million, the NPRR provides
The charge to fund the program will be allocated to Load on a Load Ratio Share (LRS) basis based on the total Load for the calendar quarter prior to the calendar quarter in which the payment occurs, the NPRR provides. The allocated charge will be included in a one-time miscellaneous Invoice issued after the final settlement for the last Operating Day in the previous calendar quarter has occurred.
"Broader deployment of advanced grid support is expected to improve grid stability, reduce resource curtailment, and maximize the value of existing transmission and generation assets. These benefits can help defer or avoid traditional infrastructure upgrades, which often involve longer development timelines and capital expenditures. As ERCOT continues to experience rapid Load growth and increasing IBR penetration, expanding advanced grid support adoption among existing ESRs and IBRs represents an economically efficient solution," ERCOT said in the NPRR
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May 26, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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