ERCOT Nodal Risks: What To Believe and How to Avoid Common Pitfalls

Synopsis

Coming out of a hot and expensive 2023 summer, nodal dynamics have become more volatile across ERCOT, with some assets experiencing rather extreme nodal conditions. With increased scrutiny on projects, developers, investors and lenders alike are looking to properly assess nodal value and risks. What are the key considerations when assessing the value of different nodes and some common misconceptions of nodal performance?