By Rebecca Miller, Director U.S. Trading and Operations

ERCOT’s upcoming shift to Real-Time Co-Optimization + Batteries (RTC+B) represents one of the most significant structural changes to the market in over a decade. For the first time, energy and ancillary services will be optimized together in real time—a move that promises greater market efficiency but also increases pressure on asset operators to align commercial strategy with technical execution.

For battery storage owners and operators, RTC+B will reshape how assets are offered, cleared, and dispatched. It will affect everything from telemetry and forecasting assumptions to site control logic and day-to-day coordination across portfolios.

It’s certainly a big shift, but not a reason to panic. Done right, RTC+B is more than a rules update. It’s a chance to tighten up operations, rethink risk, and position your asset for stronger performance. The batteries that treat this as a strategic exercise—not just a compliance exercise—will come out ahead.

What’s changing?

At its core, RTC+B introduces simultaneous optimization of energy and ancillary services in real-time dispatch. ERCOT has historically lagged behind other ISOs in this area; this update brings it in line with broader market norms. But the implementation carries unique implications for battery operators, particularly given ERCOT’s position as a leader in storage participation and a laggard in co-optimization logic.

RTC+B redefines how ERCOT models batteries based on constraints like duration and efficiency. Offer strategies will need to evolve to account for co-optimized product selection. Now telemetry accuracy becomes foundational: what you report defines what you can clear. And exposure to real-time volatility will increasingly depend on how well physical and operational realities are captured in your platform configuration.

What’s at stake? 

When the rule goes live, a major risk is missing out on weeks of revenue if your asset isn’t appropriately configured and is required to sit on outage. As time goes on, RTC+B may not raise or lower revenue across the board, but it will sharpen the divide between those who adapt and those who don’t. Longer-duration assets will have more tools to respond to volatility and unlock value across ancillary services.

In the lead-up, we’re seeing two common blind spots across the industry. Some asset owners are commercially sharp but underestimate the technical components: how telemetry and EMS logic can quietly dictate both performance and compliance. Others have deep technical knowledge but aren’t fully accounting for how product saturation, ancillary service and energy tradeoffs, and new resource constraints could reshape their revenue stack. To thrive under RTC+B, you need to unite both perspectives.

Preparation as strategy

The shift to RTC+B is not just about meeting new requirements. It’s about recalibrating how your asset participates in the market  and opening up new ways to compete. The operational decisions you make now will shape whether you’re positioned to outperform.

1. Use telemetry as a lever, not just a requirement. We’re helping partners shore up the logic behind critical resource parameters like state-of-charge, roundtrip efficiency, and ramp rates—not just to ensure compliance, but to unlock more confident and competitive real-time bidding. Telemetry points define how ERCOT interprets your asset’s capabilities and whether it can clear into the services you’re targeting. Mismatches create compliance issues and can prevent you from capturing high-value market opportunities. Don’t get caught short unexpectedly.

2. Make coordination a competitive advantage. RTC+B increases the volume and complexity of decisions. That puts a premium on tight coordination between Day Ahead Trading, Real Time Trading, and Asset Operations. We’re working with clients and internal teams to run scenario tests that mirror real-world conditions and decision pressures to not only validate our models, but to strengthen cross-functional fluency. Teams that practice together now will operate with more precision when the system shifts.

3. Be selective about where and how you compete. Co-optimization introduces more differentiated pricing and product saturation dynamics. Sticking with a familiar DA strategy or targeting the same services out of habit may no longer be effective in RTC+B. We’re helping partners reexamine their offer discipline and product prioritization, especially for shorter-duration assets. The systems that adapt will be better positioned to capture new value streams as volatility and arbitrage opportunities evolve.

Inside Habitat’s RTC+B playbook

Habitat has already supported our clients in updating controls logic and managed the first battery to pass ERCOT’s signal-following test. That early involvement gave us a front-row seat to how the rule changes are unfolding and afforded us the opportunity to shape the implementation of testing. We’re using those learnings to support all our partner portfolios as they prepare.

Internally, our mindset is “practice like you play.” We’re running scenario drills, building internal scorecards, and aligning on exposure tolerance and dispatch strategy. We’re working with clients to pressure-test assumptions and build shared understanding across teams. That includes revisiting fundamentals like confirming site diagrams, auditing telemetry mappings, and rebuilding confidence in the data that underpins strategic decisions.

We’re also planning “RTC+B bootcamp” for our clients in October to ensure trading plans are well-understood and reflect client needs and to incorporate protocols for any unexpected changes to implementation schedules.”

You’re not in this alone

RTC+B is a real shift, and one that will reward teams who treat it as an inflection point, not just an obligation. This will be new for everybody all at once. You don’t need to solve every component internally, but now is the time to bring a higher level of coordination to your operations.

Habitat has built our systems, teams, and playbooks around that level of integration. If you can meet us 20% of the way, we’ll help you move with confidence through the rest.

If you’re still figuring out what RTC+B means for your portfolio, we’d be happy to talk through it. Reach out anytime.