Key takeaways from the session include the following:
- Growing load, renewable deployment, and an aging thermal fleet call for more flexible dispatchable capacity; over 8 GW of peakers are in the interconnection queue as Texas incentivizes firm and dispatchable technologies.
- The wholesale market, Non-Spin, and ECRS are major revenue streams for peakers; the top-performing peakers achieved $200-250/kW gross margins in 2023 with optimized operating strategies.
- Peaker (CT) margins can vary significantly in different weather years. Allocating Texas Energy Fund (TEF) awards to all 10 GW of thermal assets decreases the short-term gross margins of peakers, but plants awarded with TEF show improved financials.
If you have any questions or would like to learn more about our ERCOT coverage, please contact Danielle Startsev.
