FERC Seeks to Slash Energy-Project Backlog
As the Federal Energy Regulatory Commission prepares to issue a final rule that would change the way new energy projects connect to the U.S. electrical grid, some are concerned the regulation may be insufficient, according to E&E News (subscription).
Whats going on: Speeding up the grid connection system is critical for the success of the Biden administrations signature climate initiatives and for many states clean energy goals. Todays protracted process for linking new energy projects to the transmission system is widely considered one of the chief hurdles to deploying more carbon-free energy.
The problem: Developers of clean energy undertakings and others say FERCs coming changes likely wont have the effect of getting new projects online sooner.
- Some policiessuch as the direction of regional transmission lines to study interconnection requests in groups, not individuallyhave already been implemented to little effect, they say.
- And some potential issues slowing grid connection arent covered by the regulations, including grid operators difficulty in hiring sufficient numbers of experienced engineers to process all the requests.
- Then there are network-upgrade costs, which are rising sharply and may not be meaningfully address[ed] by FERCs proposed rule.
Too long a wait: Before being able to deliver power to businesses and households, new energy projects need to be connected to the transmission systemand getting approval for that connection can take years.
- As of last year, it took an average of five years for a new energy project in the United States to move through that study process and reach commercial operation, according to the Department of Energys Lawrence Berkeley National Laboratory. Thats up from an average of three years in 2015 and less than two years in 2008.
- Whats more, [i]n the current interconnection process in most of the United States, projects are sometimes restudied up to 10 times before theyre approved to connect, one source told ENERGYWIRE.
Prioritizing projects: The proposed regulation tries to prioritize projects by commercial viability and construction readiness to cut down on the number of possible projects in the lineup.
- However some in the renewables industry say its unrealistic to expect project developers to have most of their permits and contracts in place before they have gone through the interconnection process, another source told the news outlet.
A fundamental change: FERC has its work cut out for it given the foundational changes that have taken place in the U.S. energy system in the past few decades.
- Historically, the electric grid was dominated by large, centralized power plants. But as the clean energy transition continues, that is likely to change.
The 51勛圖厙s take: Manufacturers depend on access to reliable and affordable energy to expandwhich is why we support reforms that would foster transparent, streamlined and timely federal regulatory processes for the siting, permitting and licensing of energy delivery infrastructure of all types, said 51勛圖厙 Vice President of Energy and Resources Policy Brandon Farris.
