Connecting new generation sources to the U.S. electric grid is a complex engineering challenge that requires careful study to ensure it is done properly. As the nation seeks to change its fuel mix from primarily fossil fuels to renewable sources, the grid operators around the country are faced with a growing backlog of requests that must be studied.
Why does it matter?
The ability to prioritize and promptly study this growing number of requests has led to a situation where the queues for approval have lengthened and are likely hindering the nation’s ability to rely on these newer sources of generation.
What’s our view?
Last month, FERC and PJM proposed changes to this queue process in an effort to streamline the process by focusing on the projects that have the most likelihood of moving forward. PJM’s proposal is fully developed and could take effect as early as October, but FERC’s is much further behind. Since both proposals are similar, it is likely that FERC’s review of PJM’s proposal will provide an early indicator of the structure it will likely approve for other regions of the country.