Grid Glossary

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Energy-only interconnection approaches

Connecting new generation to the grid with minimal transmission upgrades and managing impacts through operational strategies rather than extensive upfront infrastructure investments. This approach, often referred to as “connect and manage,” prioritizes adding generation capacity quickly while relying on the grid operator to manage any resulting operational constraints. It requires new resources to risk curtailment (where the generator is asked to stop supplying power to the grid when supply is too high). The process has allowed Texas’ ERCOT to connect record numbers of new clean projects in the last several years significantly faster than other regions. 

ERCOT

The Electric Reliability Council of Texas serves as an independent system operator (ISO), managing the flow of electrical power over transmission infrastructure in the state of Texas.

Essential reliability services

A combination of automated and manual controls grid operators adjust to maintain grid reliability by ensuring a balance between supply (generation) and demand (load). They generally consist of three main aspects:

  • frequency response – short-term adjustments to maintain the grid’s oscillations at 60 hz)
  • balancing – related to frequency response but on longer time frames, to, for e.g., plan for energy resource outages due to maintenance, and 
  • voltage control – involves magnetic waves to allow for the movement of watts of energy
Large load

Historically refers to industrial facilities with high electrical demand. They had long interconnection timelines that allowed for more study time under traditional planning processes. Currently, emerging large loads include cryptocurrency mining, data centers (conventional and artificial intelligence), oil field loads, and hydrogen production facilities. Many have a shorter timeline to interconnect (months vs. years) to the grid. In addition to these rapid timelines, some emerging large loads introduce new challenges to grid operators like rapid demand fluctuations and increased voltage sensitivity.

Load

The amount of power or electricity consumed by a device or system at a given time. It’s the demand placed on an energy source, like a power grid or a battery, by the connected electrical equipment.

Load growth

The increase in the demand for electricity over time. It signifies the rising need for power from various sectors, including residential, commercial, and industrial, and can be driven by factors like population increases, economic development, and the adoption of new technologies like electric vehicles and data centers.

Load shed

A controlled process where a utility company reduces or shuts off power supply to certain areas or customers to balance demand with available supply, preventing a complete system failure. It’s a last-resort measure to maintain grid stability when demand exceeds supply or when there are issues with power generation or transmission.

Locational Marginal Price (LMP)

A way for wholesale electric energy prices to reflect the value of electric energy at different locations, accounting for the patterns of load, generation, and the physical limits of the transmission system.

Loss of Load Expectation (LOLE)

Analysis is typically performed on a system to determine the amount of capacity that needs to be installed to meet the desired reliability target, commonly expressed as an expected value, or LOLE of 0.1 days/year.

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