Grid Operators Get Strategic: How Some Utilities Are Tackling Interconnection Queue Bottlenecks

As the U.S. power grid faces mounting pressure to integrate new generation resources, transmission operators are getting creative with solutions to streamline their overwhelmed interconnection queues. 

Two major grid operators—California ISO (CAISO) and PJM —are leading the charge with innovative approaches to prioritize and fast-track critical projects. Stay tuned to learn more from HeatSpring instructor Tim Taylor about CAISO’s new screening procedure that aims to reduce queue congestion, while PJM is exploring a one-time initiative called the Reliability Resource Initiative to accelerate high-capacity projects.

Transcript below

Hey, everyone. Tim Taylor here again. In some parts of the country, the grid operators are increasingly concerned about not having enough generation and storage resources to meet their load and reliability requirements. In a prior video, I described how transmission providers – that is the RTOs, the ISOs, and utilities – are working to make their interconnection queues much more efficient.

One way of doing that is to reduce the number of projects entering the queue in the first place. We’ll take a quick look at what California ISO (sometimes called CAISO) is doing with respect to this. 

A second way is to prioritize projects with certain characteristics. We’ll take a look at what PJM  is doing. Let’s get started.  

First, California ISO worked for more than a year with its stakeholders to come up with its interconnection process enhancements (or IPE).  They’re shooting to reduce the number of projects the ISO has to review in this cluster study process by using a new screening procedure that prioritizes projects based on transmission availability and commercial viability, and use that screening procedure to feed into its interconnection study process; therefore, having fewer projects going into that study process. 

This proposal was approved by FERC at the end of September, but is still subject to the approval of California ISO’s Order 2023 Compliance Filing. 

The IPP is designed to use a zonal approach, and in this zonal approach, generation and storage resources will be prioritized if they use existing available transmission capacity or additions that have been approved through California’s transmission plan.

However, resource projects outside of approved zones can proceed as merchant projects, but will need to self-fund any associated network upgrades. 

There’s also a scoring criteria, which takes into account the interest of load serving entities (or LSEs). Those are the organizations, such as distribution companies, that serve load. 

The scoring criteria will also consider other commercial interests in the project, such as non-LSE off-takers, as well as project readiness in terms of how ready is the project to proceed through the construction and testing and going online. 

In short, this IPE considers potential generation projects, transmission planning, and load. It’s taking into account the needs and interest across the entire electric power system, which is really a good thing.  

Next, let’s take a look at PJM. PJM is the RTO that serves a large part of the Mid-Atlantic and the Midwest, and includes transmission providers in Pennsylvania, New Jersey, Maryland, and other states.

PJM projects that it will potentially have resource adequacy issues, and they think they need to do something to ensure that reliability needs are met towards the end of the 2020s . They have prepared a concept, which is called the Reliability Resource Initiative, that would allow high-capacity factor projects (or they call it ELCC – effective load carrying capability) as well as shovel ready resources to be accelerated in their cluster studies, since they are looking for firm capacity resources – such as storage, nuclear, gas, and offshore wind – to be eligible for this. Solar PV, however, would not be eligible. 

The projected in-service date of the resources would be required to be June 1st, 2029. So recall that PJMs is in the midst of clearing out its existing backlog of applications and plans to start accepting a new generation storage interconnection request  by mid-2026.  

The intent of this RRI is that it would be a one-time occurrence to use an upcoming study in their transition process and allow more resources to enter the study process and get interconnected more quickly. 

Keep in mind this has not been finalized yet. The latest plan that I have heard is that PJM intends to give stakeholders a formal proposal early in November and then file it with FERC in early December. There is some concern that this would set a precedent of allowing some resources to get preferential treatment over other resources, and also slow down the process of getting other resources connected.

Keep in mind – and this is important – this is designed to be a one-time deal. This RRI is in addition to two other queue reform discussions that PJM and its stakeholders are having. 

1. One is to enable resources using interconnection service from a deactivating generator to connect more quickly.
2. Two is to use surplus interconnection service from existing generators that are not operated continuously. 

There are other activities in PJM besides just this RRI. 

That’s all I’ve got for today. If you are interested in more information about electric transmission and the interconnection of generation and storage resources to transmission, check out the Electric Transmission and Solar PV Interconnection Bundle. Heatspring is a wonderful educational resource about everything related to the clean energy industry and the new energy economy. 

Thanks for watching!