Fixing interconnection

32 snips

Sep 21, 2023

The podcast discusses the challenges and costs of interconnecting electricity generators to the grid, with a focus on Texas. It explores the backlog of projects waiting to connect, recent reform efforts, and the concept of cluster studies. The interconnection process in ERCOT is explored, highlighting the use of generator curtailment and comparing it to the PJM electricity market. The relationship between generator curtailment and interconnection requests in Texas is examined. Finally, there is a discussion on proposing a two-step study process and reforming the impact threshold for assigning upgrades to energy generation resources.

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ANECDOTE

Texas Interconnection Success

Texas has installed 40+ GW of wind power, nearly 30% of all U.S. capacity.
Texas also boasts 19 GW of solar, second only to California, demonstrating its interconnection success.

INSIGHT

ERCOT's Interconnection Approach

ERCOT's key is not relying on interconnection to fund grid upgrades, enabling faster, cheaper connections.
Generators accept curtailment risk in exchange, managed through a separate transmission planning process.

INSIGHT

System Impact Studies

Outside Texas, 'system impact studies' assess a generator's effect on the grid, often leading to required upgrades.
This process analyzes power flow, contingencies, and potential overloads, impacting connection timelines.

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Everything's bigger in Texas—the hats, the boots, the convenience stores. But its interconnection times? They’re surprisingly short.

In the U.S. it takes power generators four years on average to get approval to connect to the grid, and in some places, it takes far longer. In the Texas electricity market, it takes only about 1.5 years between interconnection request and agreement. And it costs way less to interconnect, too.

The results are telling. The Texas grid, operated by the Electricity Reliability Council of Texas, or ERCOT, has installed more wind power than any other state—40+ gigawatts worth. It’s also installed 19 gigawatts of solar power, second only to California. ERCOT has interconnected two times more generation than PJM, an electricity market in the Mid-Atlantic, even though PJM is two times larger than ERCOT in terms of peak load.

So what does Texas know about interconnection that the rest of the U.S. doesn’t? And how could other states learn from Texas?

In this episode, Shayle talks to Tyler Norris, PhD student at Duke University’s Nicholas School of the Environment and former vice president of development at Cypress Creek Renewables. Tyler recently published a policy brief on how the U.S. could reform its interconnection process, applying lessons from ERCOT.

They cover topics like:

Why FERC’s system impact studies lead to long delays and high costs
ERCOT’s shorter and lower-cost process, called “connect-and-manage”

Recommended Resources:

Duke Nicholas Institute: Beyond FERC Order 2023: Considerations on Deep Interconnection Reform
Catalyst: Understanding the transmission bottleneck
FERC: E-1: Commissioner Clements Concurrence on Order No. 2023: Improvements to Generator Interconnection Procedures and Agreements
Brattle Group: Generation Interconnection and Transmission Planning

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