Telemetry could impact ERCOT’s rollout of real-time co-optimization with batteries

ERCOT is set to roll out its real-time co-optimization with batteries program (RTC+B), which could open up new value streams for batteries. But the rollout hinges on something deceptively simple: telemetry. 

“The real risk isn’t that telemetry is hard. It’s that it’s assumed to be easy, until it isn’t,” Gary Cate, a principal director of energy markets at Fluence, told ESS News, explaining that the consequences of inadequate telemetry systems show up in misaligned bids, missed signals and unclaimed value. 

Telemetry, which refers to the continuous data streams linking storage systems to the grid operator, tracks metrics like state of charge, output and system performance. The independent system operator for Texas electricity, ERCOT, uses that data to make sure batteries respond promptly to dispatch instructions.  

But under RTC+B, that responsiveness becomes non-negotiable since assets will be dispatched dynamically based on the grid conditions. That’s even more the case if batteries want to capitalize on the new potential opportunities for revenues.  

But Cate warned that too many projects still treat data systems as a box to check rather than as core infrastructure.  

“If developers treat telemetry as a compliance checkbox instead of a strategic enabler, they risk delays, performance degradation or outright penalties,” Cate said. Projects may underperform not due to hardware issues, he said, but because their data infrastructure is unable to support real-time dispatch.   

And failing to update telemetry systems costs more than just missing out on a revenue opportunity. Poor telemetry integration could erode trust with ERCOT and complicate future interconnection approvals, Cate said.  

“Even minor telemetry gaps can compound into material losses over the life of a project,” he added.  

That could also undermine the performance guarantees that underwrite project financing and potentially put funding at risk. Still, telemetry upgrades might be cheaper than expected.  

“The cost of upgrading telemetry and control systems is typically modest compared to the overall capital investment in a large-scale battery project,” he explained, adding that in most cases, these upgrades represent a small fraction of a project’s CAPEX. “It’s closer to a fine-tuning exercise than a major redesign.” 

That’s part of why he sees telemetry as a decisive factor for developers and operators looking to succeed in the post-RTC+B landscape.  

“The promise of RTC+B is tremendous,” he said. Even so, he expects there to be a learning curve during the initial operational phase, “as with any large market change,” that will require close coordination across the multiple systems involved in battery operations.  

“Telemetry could emerge as a key challenge,” Cate added. “The operators who address it effectively will be the ones who succeed.”