Transitioning ERCOT market from a zonal to a nodal model

This paper presents, transitioning ERCOT market from a zonal to a nodal model. The Public Utility Commission, of Texas ordered ERCOT to explore and develop a framework for a nodally based congestion management system with a day ahead market for energy and a day ahead reliability unit commitment (RUC) process. The day ahead market will develop in two stages with stage one being an auction market based on demand bids and energy offers at any settlement point and stage two solving an integrated day ahead market with resource specific offers, demand bids, and the option for congestion revenue right (CRR) settlement in the day ahead market (or in real-time).