Summary of the Article: Reforming Grid Interconnection Prioritization
This article argues that the current “first-come, first-served” (or “Gold Rush”) system for prioritizing grid interconnection requests is inefficient and should be reformed too prioritize projects that best serve customer interests. The author proposes a shift in focus, advocating for a system where those receiving the power (load-serving entities and customers) have more influence over who gets priority access to the grid.
Here’s a breakdown of the key points:
The Problem: the current system rewards those who file interconnection requests earliest, regardless of whether their projects are the most beneficial for the overall grid or aligned with state energy policies. This leads to a clogged queue and delays in getting needed resources online.
the Proposed Solution: Prioritize interconnection based on projects linked to:
competitive Resource Solicitations: States like Colorado are already moving in this direction, and FERC should establish a clear framework for this approach.
Long-Term Contracts with Load-Serving Entities: Allow utilities (load-serving entities) to prioritize generators they’ve contracted with to meet customer demand (like in California).
Direct Customer Needs: In highly competitive markets (like PJM), allow load-serving entities to prioritize generators that hedge against specific customer loads (e.g., a data center). For shorter-term needs, auction off interconnection rights. Adaptability: The proposed model can be adapted to different market structures, from restructured states like California to more competitive regions like PJM.
Acknowledging Progress: The author recognizes recent efforts to improve the interconnection process (like FERC Order 2023 and AI tools) but argues they only address symptoms,not the basic problem of the ”Gold rush” prioritization.
core Principle: The overarching goal is to shift the focus from generator-centric to customer-centric grid interconnection policy, aligning with the principles of open access while recognizing the evolving energy landscape.
In essence, the article advocates for a more strategic and customer-focused approach to grid interconnection, moving away from a purely procedural system to one that prioritizes projects that deliver the most value to those who ultimately pay for the power.
