As we dive into the evolving landscape of renewable energy interconnection, I’m thrilled to sit down with Christopher Hailstone, a seasoned expert in energy management and electricity delivery. With his deep knowledge of grid reliability and security, Christopher offers invaluable insights into the Federal Energy Regulatory Commission’s (FERC) latest reforms and the complex world of regional transmission rules. In this conversation, we explore the intricacies of FERC’s new orders, the shift to cluster study processes, regional variations in interconnection rules, and practical considerations for renewable energy developers navigating this dynamic environment.
Can you give us a broad picture of what FERC’s Orders No. 2023 and 2023-A are trying to achieve for the renewable energy sector?
Absolutely, Silvia. FERC’s Orders No. 2023 and 2023-A are landmark reforms aimed at overhauling the interconnection process for renewable energy projects. The primary goal is to clear up the massive backlogs in grid access queues that have been stalling clean energy development for years. These orders introduce a more streamlined and predictable framework, pushing for faster processing times and integrating technological advancements into how projects are studied and approved. Essentially, they’re trying to make sure that renewable projects can get online quicker while maintaining grid reliability.
How does the ‘first-ready, first-served cluster study process’ introduced by these orders work in practical terms?
The first-ready, first-served cluster study process is a game-changer. Unlike the old serial approach where projects were studied one by one—often leading to delays if one project wasn’t ready—this new method groups projects into clusters based on when they’re ready to be studied. So, if your project has all its ducks in a row, it gets prioritized within that cluster. This cuts down on wait times and makes the process more efficient by studying multiple projects at once, identifying shared grid upgrades that can benefit the whole group.
Why do we see such a wide range of interconnection rules and processes across different regions of the country?
That’s a great question. The variation comes down to how the grid is managed in different areas. Regions with Regional Transmission Organizations (RTOs) or Independent System Operators (ISOs) often have more customized processes because they oversee large, coordinated grids with unique needs. In contrast, non-RTO/ISO areas tend to stick closer to FERC’s standard templates, but even there, local transmission providers can tweak rules based on specific grid conditions or policies. Over time, these differences have grown, especially since FERC allows providers to justify deviations if they meet certain criteria.
What should renewable energy developers keep in mind when preparing to join a cluster study in their region?
Developers need to do their homework on the specific requirements of their region’s cluster study process. This includes submitting detailed project data—like technical specs and proposed interconnection points—and meeting deadlines for deposits or other financial commitments. In some areas, there’s a cap on how many projects can join a cluster due to capacity constraints, so timing is critical. Understanding the local tariff and engaging early with the transmission provider can make or break your ability to get included.
Can you explain the difference between network resource and energy resource interconnection services, and how developers might choose between them?
Sure, these are two key types of interconnection services that dictate how a project integrates with the grid. Network Resource Interconnection Service (NRIS) allows a project to be treated as a reliable part of the grid’s resource mix, often with priority for delivering power, but it comes with stricter requirements and potentially higher upgrade costs. Energy Resource Interconnection Service (ERIS), on the other hand, is more flexible and typically cheaper, but it doesn’t guarantee the same level of grid access during congestion. Choosing between them depends on the project’s goals, budget, and how much certainty they need for power delivery.
The concept of delivery service popped up as an important factor in some regions. Can you unpack what that means and why it matters?
Delivery service is essentially the ability to transport power from your project to where it’s needed on the grid, beyond just connecting at a specific point. In some regions, especially those with high congestion or complex grid setups, securing delivery service is as critical as interconnection itself because without it, your power might not reach customers. It’s often tied to additional studies or agreements with transmission providers, and it’s particularly vital in RTO/ISO areas where grid dynamics are more intricate.
How does the choice of where to connect to the grid impact a renewable energy project’s success under these new rules?
The point of interconnection is a huge decision. It’s not just about finding a spot on the grid; it’s about weighing factors like land availability, proximity to transmission lines, and potential congestion issues. A poorly chosen location can lead to costly upgrades or delays if the grid there can’t handle the added capacity. Under the new rules, developers also have options like provisional interconnection service in some regions, which can let you connect sooner using existing capacity while upgrades are planned. So, strategic site selection can really accelerate a project’s timeline.
What’s your forecast for how these interconnection reforms will shape the renewable energy landscape over the next few years?
I’m cautiously optimistic, Silvia. If implemented effectively, these reforms could significantly speed up the deployment of renewable energy by clearing queue backlogs and creating a more predictable process. Over the next few years, I expect we’ll see a surge in projects coming online, especially in regions that adapt quickly to the cluster study model. However, the regional variations and compliance challenges might create some uneven progress, so developers will need to stay agile. Ultimately, I think these changes will be a major step toward meeting our clean energy goals, but it’ll take collaboration between FERC, transmission providers, and developers to iron out the kinks.
