Going Outside the Queue | Speeding Up Interconnection of Generation & Storage to Transmission

We all know that utility-scale solar and storage is building momentum, yet the process of interconnecting new renewable power sources remains a substantial bottleneck in the clean energy transition. In this quick video, HeatSpring instructor Tim Taylor unpacks recent developments from FERC’s September 2024 workshop on improving interconnection efficiencies. From proactive transmission planning to project prioritization, Tim delves into strategies that could be key to meeting our growing electricity demands and ensuring grid reliability in the face of rapid change.

If you’re interested in learning more about transmission and interconnection, check out Tim’s Electric Transmission and Solar PV Interconnection Bundle.

 Hey everyone, Tim Taylor here again. Just a quick video around a recent industry activity on speeding up the interconnection of generation and storage to transmission. 

FERC had a workshop on September 12-13, 2024 with a focus on how to improve efficiencies in the interconnection process, including the use of some innovative methods. There was a lot of great discussion among a wide range of stakeholders. 

The overall tone of that workshop was that FERC Order 2023 brought some good improvements to interconnection, but if further measures aren’t taken – and quickly – then we will find ourselves increasingly in a crisis where the growing electricity demand is going to outpace the generation storage resources that we have to serve them. 

The result will be severe threats to reliability. 

After watching that workshop in real time, I wanted to highlight a few points that are not directly involved in the interconnection queue, but were discussed to a significant extent during the two days of that workshop.

Thus the naming of my video of  “Going Outside the Queue.” 

First, just a reminder as to what the cluster study approach looks like as described in FERC Order 2023 in the pro forma Large Generator Interconnection Procedures (LGIP). This is a very simplified figure based on the description in that order. Also, remember that transmission providers can propose modifications contained in the pro forma procedures to FERC in compliance filings and with subsequent review and approval by FERC. That process is currently ongoing.

First, I wanted to touch upon a transmission planning that is done by the transmission providers. Now, many people refer to this as proactive transmission planning, but I tend to think the term proactive is a bit redundant when you’re referring to planning, because planning is by definition looking into the future and is therefore proactive.

Nonetheless, some of the main ideas that have gained significant traction in the last few years are to use the transmission planning process to improve the amount of data and information that is fed to developers and transmission owners before they actually submit their projects into the queue.

Now, presently developers or these interconnection customers – as they’re sometimes called – can only get good cost and timing information about a potential project by entering the queue.  

Since many projects never come to fruition and withdraw from the queue because higher cost and project durations are discovered during the study phase, this has a cascading effect in terms of restudies that have to be done, which then lengthens the time to get through the queue.

With improved transmission planning, the goal is to give interconnection customers more certain cost information and project duration information before the project goes into the queue, and therefore speeding things up. 

There was a lot of discussion at the FERC meeting and workshop around an innovative approach that Southwest Power Pool (or SPP) has been working on for some time based on an entry fee that developers would need to pay in exchange for additional cost and schedule certainty up front. 

Other transmission providers have also been making some very good improvements in how the transmission planning will relieve the burden on the queue, such as California ISO. In the past, ERCOT and MISO have had good examples of how transmission planning and construction improves the interconnection process. 

Second, we’ve got the topic of project prioritization, and that was also top of mind at the workshop. In this concept, transmission would develop or enhance their project prioritization using different concepts. This will likely prove to be quite important as we head to the shrinking reserve margins between the generation and load. 

One example out of several is the use of transmission facilities for interconnection that are currently being used by retiring generators, such as coal plants. This would enable new generation to connect to the system much quicker. 

Project prioritization is being looked upon very favorably by many in the industry, but it also has to be done carefully, so that FERC’s principles of open access and a level playing field for everyone looking to interconnect is not compromised.

Then a third additional fast track processes were discussed in the workshop. While transmission providers already have some fairly limited mechanisms by which selected projects are able to have their studies done on an accelerated basis, there is interest in how to do this quicker and for more projects. This is closely tied to number two – project prioritization. In this case, special attention needs to be paid so that the benefits in this process don’t treat the projects going through the conventional queue in an unfair manner. 

That’s all I have for now. You can find me at Heatspring.com where I’ve got two courses, one on transmission and one on interconnection to transmission.

Thank you very much. So long.