ERCOT Issues Notice Regarding Anticipated Date For Lifting DGR/DESR Moratorium

ERCOT issued a market notice stating that it anticipates that it will lift the moratorium on interconnection of Distribution Generation Resources (DGRs) and Distribution Energy Storage Resources (DESRs) beginning January 4, 2022.

ERCOT's market notice stressed that it was communicating its current expectation, and said that it will issue a further market notice if the date changes

On September 26, 2019, ERCOT issued a Market Notice announcing a moratorium on the interconnection of Distribution Generation Resources (DGRs) in order to mitigate certain reliability risks to the ERCOT System. That Market Notice indicated that the moratorium would apply until the revisions to ERCOT rules necessary to address these risks are approved and implemented.

In 2020, the ERCOT Board of Directors approved revisions to ERCOT rules that were intended to address these DGR-related risks. The approved revision requests include NPRR1016, Clarify Requirements for Distribution Generation Resources (DGRs) and Distribution Energy Storage Resources (DESRs); NOGRR212, Related to NPRR1016, Clarify Requirements for Distribution Generation Resources (DGRs) and Distribution Energy Storage Resources (DESRs); PGRR082, Revise Section 5 and Establish Small Generation Interconnection Process; and RRGRR026, Related to NPRR1016, Clarify Requirements for Distribution Generation Resources (DGRs) and Distribution Energy Storage Resources (DESRs). These revisions establish appropriate rules for interconnection, modeling, coordination, and operation of DGRs and Distribution Energy Storage Resources (DESRs). RRGRR026 took effect on September 1, 2020. The lifting of the moratorium thus now depends on the implementation of the remaining revision requests.

ERCOT currently expects that the system changes needed to allow DGRs and DESRs to register with ERCOT through the Resource Integration and Ongoing Operations (RIOO) application will be implemented on January 4, 2022. These changes should allow developers of DGRs and DESRs that qualify as "small generators" to initiate the interconnection process contemplated in PGRR082 beginning on that date. Additionally, ERCOT expects that system changes necessary to allow DGRs and DESRs to be integrated into ERCOT’s EMS will be implemented with Release R1 in February 2022—well in advance of the model-load dates that would be permissible with a January 4, 2022 registration date. Consequently, ERCOT anticipates that it will lift the moratorium on DGRs and DESRs beginning January 4, 2022.

ERCOT provides this notice to ensure all Market Participants are aware of ERCOT’s expectations regarding the lifting of the DGR/DESR moratorium. ERCOT will issue another Market Notice if these expectations change. ERCOT will also provide formal notice of the implementation of NPRR2016, NOGRR212, and PGRR082 at least ten days before implementation, as required by the Protocols, Operating Guide, and Planning Guide.