The payment will be issued 12 months after the technology is successfully implemented and is designed to offset the cost of upgrading existing systems or installing grid-forming capability in new projects.
To be eligible for the incentive, resources must be inverter-based, primarily BESS, though solar or wind facilities with storage may also qualify. Applicants must complete an application form, comply with ERCOT’s technical requirements outlined in Section 2.14 of the Nodal Operating Guide, and demonstrate that the technology works through model quality tests as specified in Planning Guide Section 6.2.
The application process operates on a first-come, first-served basis with a cap on total incentive funding of US$25 million. Applicants are required to provide plant details, an expected implementation date, and technical demonstration of the grid-forming capability.
Grid-forming technology
Energy storage facilities that traditionally functioned primarily as backup generators are now increasingly expected to provide grid-forming capabilities, with BESS and modern inverters delivering inertia and reactive power services that were historically supplied by gas and thermal power plants with spinning turbines.
