ABB software manages advanced wholesale power market for ERCOT

The nodal electricity market system provides considerable advantages over the zonal system previously used by ERCOT

Zurich, Switzerland, January 12, 2011 — ABB's Network Manager Market Management System is now being used to administer the wholesale power market for the Electric Reliability Council of Texas.

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.

The nodal electricity market system, which went live on Dec. 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, 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 substantial cost savings, in the order of $5 billion, over the next 10 years.

ABB’s MMS solution is the key technology in ERCOT’s new nodal market. 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. 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 U.S., 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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