The Solar and Storage Industries Institute (SI2) today released a new report entitled “Interconnection reform: how one grid operator is changing the game,” which details how a proposal currently under consideration by FERC could finally solve some of the long-standing problems with renewable energy interconnection.
The report discusses how the Southwest Power Pool (SPP) Consolidated Planning Proposal (CPP) puts into practice the interconnection and planning reforms that SI2 has long put forward. Initial comments on the SPP proposal will be sent to the FERC on November 24.
“Southwest Power Pool’s proposal is one of the most comprehensive efforts we have seen to link the transmission planning process with the interconnection process and allocate interconnection costs more efficiently,” said David Gahl, executive director of SI2. “This is what a game-changing interconnection reform looks like in practice and other grid operators should take a close look at this proposal.”
This report builds on SI2’s 2024 report: “Pioneering interconnection reform“, which calls for deeper coordination between regional planning and queue management, along with a rethink of cost allocation with an ‘entry fee’ model. SI2 urges network operators to integrate long-term transmission planning with interconnection processes and adopt an ‘entry fee’ structure to simplify costs and reduce risks for developers. SI2’s new analysis describes how SPP has operationalized this approach and identifies key questions for implementation.
The need for additional interconnection reforms remains urgent. Despite federal action under FERC Order 2023, 2,300 GW of projects remain tied up in interconnection backlogs, nearly twice the total electrical capacity currently operating in the United States. Solar and storage projects make up 80% of this backlog, slowing progress on clean energy deployment and increasing costs for developers and American households and businesses.
Synchronizing long-term transmission planning with interconnection and then developing a more reasonable fee structure that helps finance transmission build-out work to ensure project completion and provide developers with long-sought predictability.
“Solar and storage continue to provide competitive, reliable energy and public support remains strong,” Gahl said. “Restoring interconnection is essential to meet rising energy demand and ensure American households and businesses have access to affordable clean energy.”
News item from SI2
