The main barriers for solar and battery storage projects in the interconnection process center on structural, regulatory, and technical challenges that lead to significant delays, increased costs, and high project withdrawal rates.
Key Barriers in the Interconnection Process
1. Interconnection Queue Backlog and Delays
- There is a massive backlog of interconnection requests, with active grid connection requests more than double the total installed U.S. power plant capacity, heavily dominated by solar and battery storage projects.
- The time projects spend waiting in interconnection queues has increased by about 70% over the past decade, causing significant project delays.
2. High Withdrawal Rates
- Approximately 80% of projects in these queues are withdrawn before completion, reflecting how difficult and uncertain the interconnection process has become for solar and storage developers.
3. Rising Interconnection Costs
- The costs associated with interconnecting these projects to the grid have risen, particularly impacting wind, solar, and battery storage projects, making smaller or less financially robust projects less viable.
4. Regulatory and Technical Barriers
- Outdated or inconsistent interconnection rules and technical standards complicate the process for energy storage and solar-plus-storage systems.
- Many regulatory frameworks have not kept pace with the unique characteristics of energy storage, which can function both as load and generation, leading to unclear or restrictive interconnection requirements.
5. Inefficient Application Review and Processing
- Processing interconnection applications can be slow and costly due to lack of streamlined procedures and insufficient grid operator resources.
- Also, there is a shortage of standardized, transparent interconnection procedures for hybrid solar-plus-storage projects, which can delay approvals and increase uncertainty for developers.
Summary
Solar and battery storage projects face a complex interconnection landscape marked by long queue backlogs, high withdrawal rates, rising costs, and outdated or inconsistent regulatory and technical standards. These barriers collectively slow down the deployment of clean energy and storage resources critical for grid modernization and decarbonization. Initiatives like the BATRIES project have focused on identifying and proposing solutions to these challenges to expedite and reduce the cost of interconnection for energy storage systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-barriers-for-solar-and-battery-storage-projects-in-the-interconnection-process/
