Dive Brief:
- In the last two years, grid operators have made “significant progress” on their generator interconnection queues, partly by implementing reforms mandated by the Federal Energy Regulatory Commission, according to a report released Tuesday.
- However, there isn’t yet evidence that interconnection requests are being processed more quickly, according to the Advanced Energy United report. Also, fast-track interconnection policies are causing limited system headroom to be used by resources that are overly utility-affiliated and fossil-heavy compared to average queue resources, AEU said in the report, which was drafted by Grid Strategies and the Brattle Group.
- Even with improved interconnection processes, other factors may delay or prevent generating projects from coming online, including necessary network upgrades, supply chain and permitting, according to the report.
Dive Insight:
The report finds that a lot has changed since clean energy trade group AEU released a scorecard two years ago that assessed generation interconnection processes at the seven major U.S. grid operators.
“Various gating policies, intended to foster a queue of projects that are ready to progress towards completion and operation, are beginning to shift more viable projects up in the queue and cause exit by less viable projects,” AEU said in its progress report.
Interconnection reform efforts by the Southwest Power Pool and the California Independent System Operator are showing “promising improvements” while the Midcontinent Independent System Operator has made “incomplete progress,” according to the assessment.
The Electric Reliability Council of Texas is making “incremental progress” and the PJM Interconnection, ISO New England and the New York Independent System Operator are making “expected progress,”the report said.
Besides adopting cluster study approaches and setting enforceable interconnection study timelines as required by FERC Order 2023, many grid operators have taken other steps to speed the review process by introducing new tools, clarifying alternative pathways and adjusting the cluster process itself, AEU said.
One-time, fast-track interconnection review processes adopted by MISO, PJM and SPP “can create tension and potential for discrimination between the regular queue and the alternative fast track queue, between project ownership type (utility vs IPP), and between fuel types,” AEU said. “It is better to speed up and improve the whole queue without offering special treatment to certain types of resources.”
Grid operators should consider other areas for interconnection reform, according to AEU. They include:
- Setting an entry fee for interconnecting new resources to pre-planned transmission, such as SPP’s Consolidated Planning Process and CAISO’s zonal scoring structure.
- Creating or updating processes for replacing existing plants and making use of available system capacity.
- Identifying the most cost-effective solutions for resolving reliability violations.
- Using automation to speed interconnection studies.
- Improving reporting on network upgrade construction after generator interconnection agreements are signed.
“With all regions now implementing yesterday’s best practices in the form of Order 2023 compliance, the industry can turn to the unending and essential task of continuous, iterative improvement,” AEU said.
