Flexible Ramp Product
A flexible ramp product compensates resources that can increase or decrease output quickly to cover forecast uncertainty between dispatch intervals. It was introduced by markets such as CAISO to ensure sufficient upward and downward ramping capability during steep net-load ramps caused by solar variability and evening demand growth.
Resources bid ramp capability separate from energy, committing to hold headroom or turndown capacity that can be deployed within minutes. Settlement is based on the reserved ramp quantity and the clearing price determined by system needs, similar to ancillary service procurement.
Flexible ramp products complement scarcity pricing, capacity markets, and ancillary services by targeting short-term ramping constraints. Storage, fast gas turbines, hydro units, and aggregated demand response portfolios are key providers, and several other ISOs are studying similar constructs.
Other markets such as MISO and SPP are evaluating comparable ramping services, indicating that flexible ramp revenues may become a standardized component of storage and fast-start project business cases worldwide.
Technical Details
- •Procures upward and downward ramp capability in megawatts per minute
- •Clears separately from energy and ancillary service markets
- •Forecast errors and renewable volatility drive procurement volumes
- •Eligible resources must pass telemetry and responsiveness tests
- •Settlements pay cleared ramp quantity times the flexible ramp clearing price
Why It Matters
Ramping scarcity can erode energy margins even when capacity is sufficient. Tera links flexible ramp requirements with asset performance data so developers can quantify ramp revenues, while utilities benchmark which portfolios already provide the service and where additional storage or VPPs are needed.
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