The Federal Energy Regulatory Commission (FERC) has recently proposed new “ride-through” reliability standards specifically designed for inverter-based resources (IBRs) such as wind, solar, and battery systems. These standards aim to ensure that IBRs can sustain brief fluctuations in grid frequency and voltage caused by events like faults on the transmission system, rather than shutting down. By maintaining operation through such disturbances, IBRs can continue to provide essential services, including dynamic reactive power support and frequency response, which are critical for the reliability and stability of the power grid. This initiative is part of a broader effort to enhance grid reliability and stability as the energy landscape increasingly incorporates renewable resources. The focus on developing these standards underscores the importance of adapting regulatory frameworks to keep pace with the rapid adoption of renewable energy technologies.
The Importance of Ride-Through Capability
The North American Electric Reliability Corporation (NERC) has underscored the critical nature of generator ride-through capability as a foundational reliability service. Ensuring that IBRs can ride through disturbances addresses significant reliability risks posed by the abrupt loss of generation. For instance, in 2022, approximately 2.5 GW of solar power in Texas unexpectedly disconnected from the grid due to disturbances, highlighting the necessity of robust fault ride-through standards. This incident demonstrated the potential vulnerabilities in renewable energy systems and underscored the need for resilient design in IBRs to prevent similar occurrences in the future.
NERC’s proposal outlines what it means for generators to ride through a disturbance, sets specific voltage and frequency ride-through criteria for IBRs, and mandates that post-disturbance ramp rates must return to pre-disturbance conditions. This proposal is part of a broader series of standards FERC directed NERC to develop in 2023, which include data sharing, model validation, planning, operational studies, and performance requirements related to IBRs. These comprehensive standards are intended to create a framework that ensures IBRs can reliably integrate into the existing grid infrastructure while maintaining stability and performance. If approved, the new standards will come into effect on the first day of the quarter that starts 12 months after FERC’s approval, providing a clear timeline for implementation.
FERC’s Broader Initiatives for Grid Reliability
Beyond the proposed ride-through standards, FERC’s open meeting covered several other significant topics concerning grid reliability, resource adequacy, and transmission planning. Commissioner David Rosner highlighted findings from NERC’s Long-Term Reliability Assessment, which warns that half of the United States could face power shortages within the next decade under average summer and winter conditions. These projections underscore the urgency of addressing potential capacity issues and ensuring the grid can meet future demands.
Rosner emphasized the importance of achieving maximum efficiency from the current system while maintaining and expanding grid resources. He stressed the need for signaling investment in the right resources in strategic locations across the country to manage this risk effectively. By highlighting the necessity of such investments, Rosner called attention to the critical role of strategic planning and resource allocation in bolstering grid reliability amidst a dynamic energy landscape. This perspective reflects a proactive approach to preventing power shortages and enhancing overall grid resilience.
In another decision, FERC rejected a complaint by Urban Grid Solar Projects regarding the PJM Interconnection’s removal of a 900-MW solar project from its interconnection queue due to a missed deadline for submitting a security deposit. Despite recognizing the pressing need for significant generation capacity, Rosner concurred with the decision but voiced his frustration over procedural technicalities that impede project advancement, especially when deadlines are missed by narrow margins. This case highlighted the balance between maintaining procedural integrity and fostering the growth of renewable energy projects, emphasizing the need for flexibility in certain administrative processes.
Addressing Procedural Challenges and Transparency
Commissioner Judy Chang raised concerns about the transparency and oversight of local transmission projects, particularly following FERC’s approval of a settlement with Public Service Electric and Gas. She noted feedback from various state regulators indicating that many transmission projects lack adequate scrutiny. Chang expressed interest in exploring mechanisms to ensure transmission investments are cost-effective and subjected to sufficient oversight and transparency. Enhancing transparency and oversight can help ensure that transmission projects serve the public interest and effectively contribute to grid reliability.
FERC’s commitment to addressing these concerns reflects a broader effort to improve regulatory processes and ensure that stakeholders have access to relevant information. By fostering greater transparency, FERC aims to build trust and facilitate more informed decision-making in the planning and execution of transmission projects. Enhanced oversight can also help prevent potential issues and ensure that investments in grid infrastructure are both necessary and beneficial.
Major Energy Transactions and Their Implications
FERC’s open meeting also saw the approval of significant energy transactions. The sale of Allete, a utility company based in Duluth, Minnesota, to the Canada Pension Plan Investment Board and Global Infrastructure Partners was approved for $6.2 billion. This deal, expected to close by mid-2025 pending regulatory approvals from Minnesota and Wisconsin, represents a substantial investment in the energy sector and reflects the growing interest in renewable resources. Such transactions can have far-reaching implications for the energy landscape, potentially influencing market dynamics and investment trends.
Additionally, FERC approved LS Power’s acquisition of Algonquin Power for up to $2.5 billion, including approximately 3,000 MW of wind and solar assets and an 8,000 MW pipeline of various renewable energy projects. These transactions reflect the ongoing momentum in the renewable energy sector, with significant financial commitments being made to expand capacity and diversify energy portfolios. The scale of these acquisitions underscores the confidence investors have in the future of renewable energy and the anticipated growth of these markets.
Advocacy and Regulatory Reforms
RENEW Northeast, a renewable energy advocacy group, successfully brought a complaint against New England transmission owners regarding the imposition of operating and maintenance costs for network upgrades on interconnection customers. FERC determined these costs were unjust and directed the region’s transmission owners to amend their rate protocols to broaden the definition of “interested party,” thereby granting greater access to relevant information for stakeholders, including state utility regulatory commissions, consumer advocacy agencies, and state attorneys general. This decision represents a significant step towards ensuring that the financial burden of network upgrades does not unfairly impact interconnection customers and promotes a more equitable approach to grid development.
These regulatory reforms and advocacy efforts are crucial in ensuring that the transition to renewable energy is both efficient and equitable. By addressing procedural challenges and enhancing transparency, FERC aims to create a more robust and reliable energy grid. These reforms also highlight the importance of stakeholder engagement in the regulatory process, ensuring that a diverse range of voices is considered in decision-making. As the energy landscape continues to evolve, maintaining regulatory flexibility and responsiveness will be key to supporting the effective integration of renewable resources.
Conclusion
At FERC’s open meeting, the discussion extended beyond proposed ride-through standards to include key topics on grid reliability, resource adequacy, and transmission planning. Commissioner David Rosner underscored troubling findings from NERC’s Long-Term Reliability Assessment, noting that half of the U.S. could experience power shortages within the next decade during average seasonal conditions. These predictions highlight the urgent need to resolve potential capacity issues to meet future energy demands.
Rosner emphasized maximizing efficiency from the current grid while expanding and maintaining resources. He highlighted the necessity of signaling investment in the right resources in strategic areas nationwide to manage these risks effectively. By doing so, he stressed the critical role of strategic planning and resource allocation for improving grid reliability in a changing energy landscape. This perspective advocates a proactive approach to preventing power shortages and enhancing grid resilience.
Additionally, FERC denied a complaint by Urban Grid Solar Projects about PJM Interconnection’s removal of a 900-MW solar project from its queue due to a missed security deposit deadline. While acknowledging the need for more generation capacity, Rosner agreed with the decision but expressed frustration over procedural issues hindering progress, especially with narrowly missed deadlines. The case underscores the balance needed between procedural integrity and supporting the growth of renewable energy projects, advocating for flexibility in certain administrative processes.
