Curtailment Priority Protocol
A curtailment priority protocol specifies the order in which generators are reduced when grid operators must lower output for reliability. Protocols may prioritize essential services, critical infrastructure, or projects with contractual curtailment protection. Transparent rules reduce disputes by clarifying how renewable plants, storage systems, and thermal units will be dispatched during congestion or oversupply events.
Protocols are embedded in interconnection agreements, PPAs, and market rules. They consider technology characteristics, ability to provide ancillary services, and socioeconomic impacts. Some markets implement locational priority lists that integrate remedial action schemes, ensuring voltage stability while honoring contractual rights.
Developers negotiate priority status by offering flexible operating modes, storage integration, or local reliability services. Lenders review protocol language to understand residual curtailment risk, especially for merchant assets or projects located behind constrained transmission.
Regulators monitor protocol performance and may adjust rules to align with decarbonization goals, for example by reducing fossil priority or rewarding hybrid assets that can store surplus energy instead of being curtailed.
Technical Details
- •Defined within interconnection agreements, PPAs, or market tariffs
- •May incorporate technology categories, voltage support obligations, or emission goals
- •Coordinates with remedial action schemes and congestion management tools
- •Requires telemetry and reporting to document curtailment events
- •Influences lender perceptions of revenue certainty
Why It Matters
Clear curtailment priority rules protect project cash flows and streamline dispute resolution. Tera catalogs regional protocols, interconnection clauses, and historical curtailment data so developers can quantify risk when screening sites.
Related Features
Exclusive Market News
Newsletter
Get exclusive market intelligence, data-driven insights, and strategic analysis on global electricity markets. Receive updates on emerging trends, regulatory developments, infrastructure projects, and investment opportunities that impact your energy strategy and decision-making.
