What Is a CLR & How Does It Differ From an NCLR?

When the Texas grid gets tight, ERCOT doesn’t rely only on power plants to keep supply and demand in balance. It can also call on some of the grid’s biggest electricity users, from cryptocurrency mining operations to chemical plants, to use less. As more large, flexible loads connect to the ERCOT system, the way a load registers with ERCOT shapes how it participates in the market, how it gets paid, and what’s expected of it when the grid needs help. 

ERCOT registers large loads that can reduce consumption as Load Resources. The two main types are Controllable Load Resources (CLRs) and Non-Controllable Load Resources (NCLRs). Both can supply ancillary services. Only the CLR is dispatched by the real-time energy market the way a generator is. 

It’s important to understand the difference between these two types of Load Resources, because it determines how a facility responds to ERCOT, which ancillary services it can provide, and how it’s compensated. In this blog post, we’ll walk you through how CLRs and NCLRs work, how each is deployed and paid, and which kinds of facilities fit each model. 

Controllable Load Resources 

A CLR is a load ERCOT can move up or down under dispatch control. Reducing consumption is treated as equal in value to increasing generation. Typical examples are large industrial facilities and cryptocurrency mining operations. 

A CLR that participates in the energy market submits a bid for the price it is willing to pay. When the real-time price is at or below that bid, the site continues consuming. When the price clears above the bid, Security-Constrained Economic Dispatch (SCED) sets a lower base point and the site must move toward its minimum.  

CLRs can also qualify for ancillary services. They provide Responsive Reserve through primary frequency response and must follow SCED. They can provide Regulation Up and Regulation Down by responding to automatic control signals. They provide Non-Spin and ERCOT Contingency Reserve Service by following SCED after the reserve is released to the real-time market. 

Non-Controllable Load Resources 

An NCLR is a registered Load Resource that is not under SCED dispatch control. It does not follow five-minute base points. It supplies reliability support in two ways: an under-frequency relay that automatically trips the load when system frequency falls, or a reduction when ERCOT issues a deployment instruction through its Qualified Scheduling Entity. 

NCLRs can provide Responsive Reserve, ERCOT Contingency Reserve Service, and Non-Spin. They must meet the response time for the product (typically 10 minutes for Responsive Reserve and ECRS, 30 minutes for Non-Spin) and carry real-time telemetry so ERCOT can verify availability. ERCOT limits how much Responsive Reserve can come from NCLRs. Settlements for NCLR participation are made with the QSE that represents the resource. 

Ancillary services and payments 

Both resource types compete with generation to supply operating reserves. ERCOT procures these services in the day-ahead market and can procure more closer to real time if needed. A Load Resource that clears is paid the capacity price for being available, whether or not it is actually called. The value of the load reduction is equal to the value of an increase in generation. 

Recall and deployment 

For an NCLR, deployment comes as an electronic notice to its QSE, often followed by a Verbal Dispatch Instruction. The load must deliver its committed reduction within the product’s ramp window. Separately, the under-frequency relay can trip the load automatically if frequency hits the set point, without waiting for an instruction. 

For a CLR, the primary instruction is the SCED base point. If the CLR is providing Regulation, it also receives frequent automatic signals to move consumption. When an ancillary-service award is released into the real-time market, SCED can dispatch the CLR from its energy bid. 

Examples of CLRs and NCLRs in ERCOT 

Many kinds of large facilities can register as Load Resources in ERCOT. Which type fits best depends on how quickly and precisely a facility can change its consumption. Here are some common examples: 

• Data Center (Crypto Mining) — Classic CLR. Highly flexible, price-responsive, and commonly registered to follow SCED. 

• Data Center (Artificial Intelligence) — Emerging CLR path. Can shed compute load and is increasingly discussed for dispatchable interconnection. 

• Chemical Plant — Large industrial process load. Can qualify as either a CLR (if it can follow base points) or an NCLR (if it can trip or drop on instruction). 

• Manufacturing/Processing (Steel) — Process load that can curtail. Fits both models depending on how quickly and controllably it can reduce. 

• Oil and Gas Refinery (Non-Critical Load) — Same pattern as extraction. Strong NCLR candidate; CLR only if the non-critical portion can follow SCED. 

• Manufacturing/Processing (Liquified Natural Gas) — Large process load that can reduce. Fits CLR if controllable, NCLR if it drops on relay or deployment. 

• Hydrogen Production and Storage — Flexible industrial load. Well suited to CLR participation if it can follow dispatch instructions. 

In short, a CLR is a load ERCOT can continuously reposition through the real-time market. An NCLR is a load that stands ready to drop on frequency or on an ERCOT deployment instruction. Both earn capacity payments for availability. Only the CLR is moved every five minutes by SCED. 

CLRs are about to take on a bigger role in ERCOT’s market. Read about how NPRR 1188 brings Day-Ahead Market energy bidding to Controllable Load Resources in January 2027. 

Have questions about how your Load Resources participate in ERCOT? Talk to our team.