Allison Clements, a former FERC commissioner with a strong focus on environmental law, shares her insights on grid modernization challenges. She discusses the critical need for regulatory updates and innovative technologies to integrate clean energy. Clements critiques outdated planning methods and emphasizes the importance of a collaborative national approach for infrastructure investment. The conversation also explores the role of distributed energy resources in enhancing grid reliability and efficiency, drawing lessons from successful implementations like Australia’s rooftop solar.
Allison Clements stresses the urgent need for modernizing the outdated grid infrastructure to address resilience and national security challenges.
The interconnection queue bottleneck poses significant delays for clean energy projects, requiring comprehensive reforms for efficient processing and accountability.
Clements advocates for long-term, collaborative planning of transmission infrastructure to fully leverage the economic benefits of renewable energy resources.
Deep dives
Concerns Over Grid Adaptability
The regulatory framework governing the U.S. energy system faces significant challenges amid rapid changes in the energy landscape. Alison Clements expresses a persistent worry that the existing grid infrastructure is outdated and increasingly inadequate to handle modern demands. She emphasizes that problems like resilience against climate-related challenges and maintaining national security are now more pressing than ever. With the electricity system being central to the economy, there is urgency for regulatory structures to adapt quickly to the evolving needs of the energy transition.
Interconnection Queue Inefficiencies
Clements highlights that the interconnection queue is a major bottleneck for clean energy projects, with 2.6 terawatts of renewable generation waiting to connect to the grid. While a recent FERC order attempts to address these delays by promoting cluster studies for efficient processing, it falls short of fundamentally modernizing the interconnection process. She notes that the initial interconnection procedures were designed for large fossil fuel plants, leading to overwhelming backlogs for new clean energy projects. There is a need for more comprehensive reforms to streamline interconnection while ensuring accountability for project developers.
Transmission Planning Challenges
Another critical issue is the slow and uncoordinated planning for transmission infrastructure needed to accommodate the increased reliance on renewable energy. Clements discusses a new FERC rule that requires utilities to create 20-year transmission plans, but emphasizes the need for long-term, collaborative planning across regions. She compares the necessity of transmitting renewable energy over long distances to how the national highway system was developed, pointing out the economic benefits that come with efficient transmission investment. Despite progress, she argues that the lack of comprehensive interregional planning hinders the U.S. from fully reaping the benefits of its vast renewable resources.
Integrating Distributed Energy Resources
Clements underscores the importance of integrating distributed energy resources (DERs) into the energy market, particularly following significant regulations like Order 2222, which mandates the inclusion of such resources in wholesale markets. She identifies the ongoing struggle to facilitate broader participation of DERs as a crucial aspect for improving overall grid functionality. Although the potential for DERs to curtail reliance on traditional generation sources exists, challenges remain in operational coordination and regulatory clarity. The movement toward a layered grid architecture embodies the vision of local energy markets that can integrate seamlessly with larger systems, suggesting a need for innovative regulatory approaches.
Navigating Bureaucratic Complexities
Clements reflects on her experiences within the intricacies of federal bureaucracy, noting the balance between regulatory processes and the need for public participation. She advocates for an informed public as essential to making decisions that reflect the interests of communities impacted by energy policies. The creation of the Office of Public Participation demonstrates a shift toward more inclusive engagement, though Clements acknowledges the complexity of effectively implementing this vision. The challenge moving forward is to ensure that public concerns influence regulatory actions while navigating the inherent slow pace of bureaucratic processes.
In this episode, I sit down with Allison Clements, former FERC commissioner, to discuss her time at the commission and the challenges of grid modernization. We dive into the complexities of integrating clean energy, reforms to interconnection queues, and how the commission can take a more active role in the energy transition.
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