ABB software manages advanced wholesale power market in Texas, US

Technology brings operational improvements, cost efficiencies and enhanced reliability

Zurich, Switzerland, Jan.12, 2011 – ABB, the leading power and automation technology group, announced today that its Network Manager™ Market Management System (MMS) is now being used to administer the wholesale power market for the Electric Reliability Council of Texas (ERCOT) in the United States. The software has enabled ERCOT, which operates and manages the flow of electrical power to 22 million customers, to establish a nodal electricity market, bringing substantial improvements in operational efficiency, reliability and market economics.

The nodal electricity market system, which went live on Dec. 1, 2010, provides considerable advantages over the zonal system previously used by ERCOT. Under the management of ABB’s MMS, which is fully compatible with existing third-party systems, the new market system will deliver more rapid and detailed electricity price calculations and scheduling, enabling more effective management of electricity supply and demand. The operational improvements are expected to yield improved transparency in the electricity market and substantial cost savings, in the order of $5 billion, over the next 10 years.*

“We are pleased to see the new nodal market up and running, and are proud of the contribution MMS has made,” said Jens Birgersson, head of ABB’s Network Management business unit. “This is an excellent example of how a well-thought-out market system can improve reliability and reduce costs.”

ABB’s MMS solution is the key technology in ERCOT’s new nodal market. It interfaces with supplementary systems, such as congestion revenue rights, network model management systems and credit monitoring, to ensure a robust, transparent and efficient electricity market. MMS is expected to improve the coordination of 550 generating units in the state. The system will ensure that demand is met cost-effectively and that renewable generation resources are fully integrated into the system. Texas has the largest installed wind power capacity in the US, and the nodal system, with its rapid response rates, is well equipped to accommodate the unpredictable nature of this renewable energy source.

As a system integrator and solution provider for electricity markets, ABB brings extensive experience from delivering electricity market solutions in the United States, Canada, Europe, Korea, China, Australia and the Philippines. The MMS for ERCOT was developed at ABB’s center of excellence in Santa Clara, California, and integrated into existing business and energy management systems at sites across Texas. The MMS product is part of ABB’s Network Manager suite, now included in the recently acquired Ventyx portfolio.

ABB ( is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.

* According to independent research carried out by Potomac Economics and CRA International

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