The Evolving Landscape of Grid Planning: A Shift towards Consolidated Planning Process

The evolving landscape of grid planning is undergoing a significant transformation, particularly concerning how generators interconnect with the power grid. Historically, the “Connect and Manage” (C&M) approach was common, allowing generators to access the grid without guaranteed transmission pathways. While initially appearing faster and less expensive, C&M left generators facing uncertain revenue and often resulted in transmission bottlenecks. Traditional interconnection steps included Electric Resource Interconnection Service (ERIS) for initial connection and Network Resource Interconnection Service (NRIS) to ensure access to load.

However, the limitations of C&M have become increasingly apparent. Interconnection queues are experiencing severe backlogs, leading to project delays and uncertainty. The cost of necessary grid upgrades for interconnection is often substantial and unpredictable, significantly impacting project economics, especially when upgrades require coordination across multiple states. These challenges prompted a search for a better solution.

The Southwest Power Pool (SPP) has pioneered the Consolidated Planning Process (CPP) to address these issues. CPP integrates interconnection and transmission planning, ensuring upgrades are strategically timed and located. A key benefit of CPP is the provision of upfront cost certainty for both generators and utilities. CPP introduces “GRID-C” fees: ERIS GRID-C for the initial interconnection and NRIS GRID-C for guaranteed load delivery. This system helps reduce queue backlogs by prioritizing viable projects and ensuring financial commitment. CPP represents a fundamental shift in regional planning and aligns with principles established by FERC Order 2003.

SPP initially explored C&M as a viable option but ultimately recognized its inadequacy in addressing multi-state deliverability and cost certainty. The move to CPP reflects a broader understanding of the complexities involved. According to the SPP Market Monitor, Bivens, while initially supportive of C&M, now views CPP as superior for managing multi-state concerns. Gaw, of Advanced Power Alliance, anticipates CPP serving as a model for other regions, provided stakeholders effectively balance competing interests. Transmission providers making pricing and process information readily available, as suggested by Gramlich of Grid Strategies, can further expedite the interconnection process.

The Evolving Landscape of Grid Planning: A Shift towards Consolidated Planning Process

For more information visit: https://www.yahoo.com/news/ercot-streamlined-connect-manage-approach-090000354.html

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