What is ERCOT?
Electric Reliability Council of Texas · serves ~90% of Texas electric load
ERCOT runs the power grid for most of Texas, serving about 90% of the state's electric load and roughly 27 million people. What makes it unusual is isolation: ERCOT is its own interconnection, barely tied to the rest of the United States, which lets Texas regulate its own grid but also means it can't lean heavily on neighbours when demand spikes.
That independence is why Texas could build wind and solar faster than anywhere else in the country, and also why Winter Storm Uri in February 2021 turned into a multi-day blackout. There simply wasn't enough import capacity to backfill frozen gas plants. ERCOT runs an energy-only market: generators are paid for the power they produce, with prices that can swing from near zero to the cap during scarcity.
- Type
- Independent interconnection + ISO
- Region
- Most of Texas
- People served
- ~27 million
- Market
- Energy-only, nodal LMP
Frequently asked questions
What is ERCOT?
ERCOT (Electric Reliability Council of Texas) is the grid operator for about 90% of Texas. It manages the flow of power across the state's transmission system and runs the wholesale electricity market that sets prices.
Why is the Texas grid separate from the rest of the US?
ERCOT operates as its own interconnection, with only small DC ties to neighbouring grids. Staying inside Texas keeps it outside most federal interstate regulation, but it also limits how much power Texas can import during emergencies.
What happened to ERCOT in 2021?
Winter Storm Uri froze gas wells and power plants while demand surged for heating. With little ability to import power, ERCOT ordered rolling blackouts that left millions without electricity for days.