Integration of Renewables in ERCOT: Costs, Project Risks and New Regulatory Requirements


Texas is the wind energy capitol of the United States with far more wind generation than any other market. The development of wind generation, and having wind developers locate their headquarters in Texas, has given the Texas economy a much-needed boost and has allowed Texas to take advantage of its world class wind resources. Wind developers have invested billions of dollars in Texas, outstripping the Texas renewable portfolio standard requirements for the construction of renewable energy. As with any sizable capital investment, developers have investment-backed expectations in the market design, rules and regulations on which their investment is based. Although the prime example of the risks at stake with siting renewables in Texas are tied to wind, the issues are the same for all types of renewable generation that are not dispatchable in the same manner as conventional generation.

Excerpted from a presentation at the 2011 Wind, Solar and Renewables, UTCLE, The University of Texas School of Law, February 23-24, 2011. To read the full paper, click on the PDF linked below.

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