Utility Integration

How solar developers can regain power and overcome interconnection delays

How solar developers can regain power and overcome interconnection delays
A DSD Renewables C&I solar project in New Jersey (Courtesy: DSD Renewables)

Contributed by Matt Gabor, VP of Engineering – Developer Network, DSD Renewables

The vast backlog of interconnection delays has held up solar projects and frustrated developers for years. Lawrence Berkeley National Laboratory (LBNL) reported that nearly 1 terawatt (TW) of solar PV capacity was in U.S. interconnection queues at the end of 2022, when wait times had steadily increased from less than two years in 2008 to as many as five years in some parts of the country. Making matters more urgent, the Inflation Reduction Act of 2022 is increasing the number of solar projects entering the queue resulting from the incentives it provides.

With interconnection delays now commonplace, projects are left in limbo worsening returns, tying up capital that could be invested elsewhere. And, while the Federal Energy Regulatory Commission (FERC) is attempting to alleviate interconnection at the transmission level, recently issued Order No. 2023, interconnection for distributed generators with local utilities remains a challenge. But, there are proactive steps developers can take to make sure projects stay on schedule and finally receive permission to operate.

SAVE THE DATE! The next edition of the GridTECH Connect Forum will be held in Orlando, Florida on February 26, 2024. We’re bringing together developers, utilities, and regulators to take on the critical issue of DER interconnection in the Southeast. Register to secure your seat today.

1. Control what you can control

Sometimes, it’s best to roll up your sleeves and take matters into your own hands.

Developers need to work closely with the local electric utility to get their projects connected to the utility’s system and operational. One way to keep projects on track is to reduce the scope and area of involvement of the utilities as much as possible. Do your homework on each utility’s requirements, whether that’s their document formats, technical specifications, or procedural quirks. Provide paperwork and diagrams exactly how utilities want them, highlight key details, and check in frequently to ensure proper understanding. It can be time consuming and resource intensive given that there are roughly 1,600 electric utilities in the U.S., but the smoother you can make the review process, the faster approval can come.

Next, minimize the utility’s direct involvement in your project. Build as close to the utility grid as permitted  to reduce how much physical labor the utility must undertake. If you can, take on necessary system upgrades yourself because you can control your schedule and meet deadlines. If the utility has a requirement that covers any project generating 1 megawatt (MW) of power or more, curtail yours to produce 999.99 kilowatts (kW) to avoid closer scrutiny.

Additionally, provide turnkey services that only allow the utility to grant final approval. Handle your own trenching, cabling, telemetry, and testing. Thoroughly pre-test systems to fix any errors in advance and eliminate potential surprises that could require more work. Clearly indicate that you’ve met (or will meet) any unique specifications in your documentation. Follow up regularly to confirm all parties understand the requirements and next steps.

The less burden you place on the utilities, the less room there is for delays.

2. Cultivate relationships through kindness

Since the start of the COVID-19 pandemic, it’s not as common to meet a utility’s representatives on site and shake hands — but relationships are as important as ever.

As they say, a little bit of kindness goes a long way. Your team can differentiate itself by being personable. Make your contacts feel at ease and connected by sharing stories or discussing similar interests. Calling from a local number also makes it seem like you’re in their backyard, even if you aren’t.

Understanding the utility’s culture can similarly make a big difference. You may not be able to say hello on site, but meet in person whenever possible to form stronger connections. Attend community events to network with personnel and demonstrate familiarity with the company’s values. The more you relate to the people working at the utility on a human level, the smoother it will be to move your project along.

Being proactive about relationship-building removes several obstacles. The utility gains greater trust in your capabilities and appreciation for your collaborative approach. If you’re a highly responsive, locally engaged developer, the utility may provide more transparency about requirements, more forgiveness for minor errors, and more willingness to brainstorm solutions.

Remember, utilities hold immense control over timelines. You may win the war of words, but you lose the project. By getting them on your side, you find a buddy rather than a barrier. Let a personal touch be your competitive advantage.

Subscribe today to the all-new Factor This! podcast from Renewable Energy World. This podcast is designed specifically for the solar industry and is available wherever you get your podcasts.

3. Push for more standardized practices

While reducing scope and building relationships help at the project level, broader policy changes are still needed to eradicate widespread interconnection delays. We must continually advocate for standardization and centralization.

The recent FERC order setting firm standards for interconnection review is a start — and it comes amid years of hold-ups — but additional process improvements are vital. Encourage your state and regional regulators to standardize practices that utilities must follow. In some nations, like France, a single grid operator covers over 95% of the country, which helps standardize and facilitate rapid project completion. Consistency reduces the complexity and potential complications that arise while navigating so many differing processes.

Depending on your company’s relationship with the utilities, consider petitioning them, or their local oversight boards, to adopt universal interconnection platforms, procedures, and conditions. Standardizing application paperwork, site plan and single-line diagram requirements, metering equipment, disconnect switches, supervisory control and data acquisition (SCADA) systems, and more would rapidly accelerate projects — and free the utility from the burden of a potentially contentious situation should something go awry.

Push for the adoption of centralized interconnection resources, too. A unified portal for submitting and tracking applications, such as PowerClerk, ConnectTheGrid, or even Salesforce, would be transformative. Highlighting these inefficiencies to regulators and utilities is key, along with providing concrete solutions like standardization.

Interconnection reform may come gradually, but as a developer and an informed advocate, you play a crucial role in making it happen.

Clearing the logjam electrifies America

The interconnection crisis has enormous implications beyond delaying developers’ timelines.

When projects get delayed, you can’t access financing, halting further renewable energy growth. And to underscore the societal and environmental impact of these delays, the total clean energy capacity in the queue “would exceed the amount necessary for the U.S. to reach 90% of electricity from zero-carbon resources by 2035,” according to LBNL. Yet gridlock keeps these projects inactive.

Developers must therefore be proactive and take steps that enhance a project’s chances of expedited approval. Our energy transition — and our future — depend on it.