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ERCOT said it made this decision after weighing various factors and accounting for a limited market response.
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According to ERCOT, it weighed factors like program costs, added complexity for control room operators, and the minimal reliability benefits.
The company also reported that the limited market response included only 11.1 mega-watts of potentially eligible capacity.
President and CEO Pablo Vegas said the original plan to add capacity was a precaution for extreme winter weather.
A probability analysis revealed that if Texas experienced a storm this winter, there would be a 20% risk of the grid entering energy emergency conditions. To avoid this, ERCOT sought to add up to 3,000 MW of additional capacity that could be used as an extra layer of protection.
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The request for additional capacity was submitted to the Request for Proposal but has since been withdrawn.
Regardless, Vegas says the power grid is adequately prepared. He said the company is not predicting emergency conditions this winter and believes they have enough resources to meet demand.
According to the statement, the company has been implementing reforms and grid improvements since 2021, including weatherization inspections, forecasting improvements, and faster response services.
Despite the low market response, ERCOT still believes there is potential to expand demand response capabilities throughout Texas, and plans to work with the Public Utility Commission of Texas and stakeholders to figure out what can work better in the future.