ERCOT Residential Demand Response — Fast-Track Flexible-Load Programs

ERCOT is finalizing new Residential Demand Response (DR) rules. By mid-2025, Retail Electric Providers (REPs) and QSEs must prove measurable load reductions during the grid’s highest net-load hours.

Most teams need 4 + months of development to launch a compliant DR stack — so the time to act is now. Discover how Codibly’s OpenADR Accelerator lets you stand up a revenue-generating program fast and gain a competitive edge in Texas’s evolving market.

Secure your place in our fast-track implementation program or submit your interest below.



What Is ERCOT’s Residential DR Program?

Texas is taking demand flexibility mainstream, and ERCOT’s new Residential Demand Response (DR) program is the catalyst.

Starting in 2025, REPs and municipal utilities (NOIE QSEs) can earn incentive payments when enrolled homes automatically reduce consumption during ERCOT’s highest net-load hours.

For providers, this is more than compliance — it’s a chance to future-proof services and unlock new revenue. By integrating OpenADR, smart thermostats, EV chargers, and batteries can respond to grid signals, saving customers money while boosting reliability.

Important Note: First ERCOT performance reports are due in 2025, and standing up a DR stack typically takes 4 + months, so the window to start is now.

Video Source: ERCOT YouTube



Meeting ERCOT DR With Codibly

Key Ways We Help Energy Providers Adapt to ERCOT DR

Codibly’s blend of consulting, pre-built accelerators, and compliance automation ensures you can launch ERCOT-ready DR programs — and act early to capture incentive revenue.

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Consulting & Training

Guidance on ERCOT DR rules, OpenADR adoption, and a roadmap to launch within months.

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Pre-Built Accelerators

OpenADR micro-services cut dev time by up to 70 % — so you can dispatch DR events before the next summer peak.

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Compliance Support

Automated baseline M&V plus quarterly ERCOT reporting — stay compliant and stress-free.

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Industry Expertise

OpenADR Alliance partner with proven DR deployments worldwide — avoid pitfalls and go live with confidence.



HOW TO IMPLEMENT RESIDENTIAL DR FOR ERCOT

Key Technical Steps for REPs & QSEs to Succeed

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Baseline & 8,760-Hour Modeling: Build hour-by-hour consumption models for each device class to validate ERCOT-required load reduction versus baseline.

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OpenADR Integrations: Implement VEN/VTN handlers that authenticate with aggregators and dispatch device commands — a 4-month integration path if you start today.

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Customer Experience & Overrides: Provide intuitive enrollment flows, event notifications, and opt-outs while keeping DR capacity intact.

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Quarterly Reporting: Automate ERCOT data submissions (ESI ID performance, event logs) to stay audit-ready.



Technical Software Solutions for Residential Demand Response

Launching ERCOT-compliant residential DR requires rigorous software architecture. Each step below needs adequate time — don’t risk starting too late.

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1. Load Modeling & Baseline Analytics

Simulate device classes against 8,760-hour datasets and ERCOT net-load curves to verify achievable kW reduction.

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2. Communications & Protocol Integration

OpenADR 2.0b/3.0 VEN/VTN services or direct device-cloud APIs to receive ERCOT DR events and dispatch load shifts.

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3. Customer Scheduling & Overrides

Fallback schedules (e.g., midday solar) plus opt-out controls keep users happy while preserving capacity.

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4. Aggregator & Utility Coordination

Secure APIs, event logging, and audit trails satisfy ERCOT verification and settlement.

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5. Data Security & Consent

Unique IDs, strong auth, secure firmware updates, and stored opt-in consents protect consumers and providers.

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6. Compliance Automation

Generate ERCOT quarterly performance files automatically, reducing manual effort and risk.



Codibly OpenADR Accelerators

Our pre-built micro-services slash time-to-market, letting you focus on customer experience instead of protocol plumbing. Quickly achieve OpenADR 2.0b/3.0 VEN compliance with a streamlined licensing model.

  • Flexible License: One-time fee, perpetual usage & modification rights
  • Certified OpenADR Product: Skip repeated certifications
  • Rapid Integration: Go live in weeks
  • Transferable Certification: Easy compliance for you & partners
  • Time & Budget Optimisation: Our accelerator handles standard protocol logic

Start integration now to meet ERCOT’s 2025 timeline!





Webinar: Residential Demand Response for ERCOT Retail Providers

Turning Flexible-Load Programs into Revenue

Watch this session where ERCOT staff and industry experts break down the new residential DR framework, incentive mechanics, and best practices for rapid deployment.

Source: YouTube



CONTACT US

Ready to Launch Your ERCOT DR Program?

  • 4-Month Dev Timeline: Start now to meet ERCOT’s 2025 schedule
  • Fast Compliance Roadmap: 15-min call + custom plan
  • Full Integration: Device firmware, aggregator services, quarterly reporting

Spencer Borison

US Lead & Associate Partner, Renewable Energy Practice