The latest reforms proposed by FERC aim to reduce interconnection queue backlogs by fundamentally changing how projects seeking to connect to the transmission system are studied and prioritized. Key elements include:
1. First-Ready, First-Served Cluster Study Process
- FERC replaced the older first-come, first-served queue system, which often caused delays because projects entering earlier but lacking readiness stalled or withdrew, necessitating costly restudies.
- The new model groups projects into clusters based on readiness rather than entry order. Projects demonstrating higher commercial readiness and site control receive priority in processing, enabling more efficient cluster studies that process viable projects faster while filtering out less developed ones.
2. Increased Financial and Readiness Requirements
- To ensure only serious projects enter and remain in the queue, FERC increased study deposits and commercial readiness deposits required from developers.
- There are now stricter site control requirements, meaning developers must show greater proof of project viability before entering the queue.
- Withdrawal penalties discourage speculative or non-viable projects from clogging the queue.
3. Firm Deadlines and Penalties for Transmission Providers
- FERC established firm, enforceable deadlines for transmission providers to complete interconnection studies, replacing the previous “reasonable efforts” standard.
- Penalties are imposed if these deadlines are missed, incentivizing faster processing and keeping the queue moving.
4. Adoption of Advanced Technologies and Tools
- The reforms encourage transmission providers to utilize grid-enhancing technologies and consider hybrid resource capabilities in interconnection studies, helping to optimize grid capacity and accommodate more projects effectively.
- Tools like PJM’s “Queue Scope” allow developers to self-assess engineering and financial impacts before formally entering the queue, improving decision-making and reducing unnecessary requests.
Together, these reforms by FERC are designed to clear the large interconnection backlogs that have hindered renewable energy deployment, increase certainty around costs and timing for developers, and improve overall transmission system reliability by enabling faster, more informed project interconnections.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-new-reforms-proposed-by-ferc-aim-to-reduce-interconnection-queue-backlogs/
