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As the installed capacity of solar photovoltaic (PV) systems in the U.S. continues to grow and more regions achieve significant renewable energy penetration, grid congestion has become a critical concern for numerous large-scale projects. For project stakeholders who lack experience or neglect thorough upfront due diligence, unexpected interconnection issues due to power limitations or grid stability concerns can lead to costly surprises that delay project schedules.
Pure Power, acting as both an owner’s engineer and independent engineer, leverages its expertise to help EPC and developer clients accurately identify, analyze, and quantify potential grid congestion impacts on supported projects. Here, I’ll discuss how Pure Power can assist in ensuring faster and more predictable project development, particularly when dealing with constrained or potentially constrained grids, through careful planning and strategic insights.
One of the initial steps in a large-scale project involves the developer engaging the regional grid operator to initiate a site-specific interconnection study. This study documents the impact of adding new generation capacity and specifies any necessary grid upgrades before interconnection. However, without proper planning, especially when selecting sites for solar installations, a project owner or developer might acquire a suboptimal site before completing the study. Interconnection studies examine two key areas: power capacity limitations and grid stability considerations.
Power capacity limitations are a major concern. Existing regional transmission systems might already be at or nearing capacity, making it financially burdensome or even unfeasible for developers to connect PV assets. Developers usually bear the majority of the cost for required interconnection upgrades, so at-capacity transmission systems can severely affect a project's economic viability.
Grid stability is another crucial factor. Outdated or heavily used transmission grids might encounter power quality stability problems when integrating variable renewable resources. With adequate planning and sufficient project timeline, stakeholders can address these concerns by choosing appropriate equipment and utilizing on-site energy storage systems.
To prevent incurring non-recoverable costs and to ensure efficient project progression, stakeholders must conduct thorough due diligence regarding project location and site characteristics related to grid capacity and interconnection early in the process. Without proper guidance and planning, project inertia can lead to rushed timelines for conducting the interconnection study and incorporating its findings into project design and budgeting.
The experience of individual utilities across the U.S. with bulk renewable power generation varies significantly, influencing their requirements for interconnection studies and the complexity of those requirements. For instance, Germany, which was an early adopter of large-scale renewables, faced grid instability issues around 2011 when utility-interactive inverters lacked modern grid-support features. This highlights the importance of utilities with experience in handling high-penetration renewables.
Utilities in regions like California, Florida, and New England are adept at managing interconnection studies and understanding their implications. They allocate internal resources to handle interconnection applications and reviews, ensuring developers conduct necessary due diligence. Although this process may appear rigorous, it often helps identify and mitigate costly issues further along in the project timeline.
Conversely, in areas lacking experience with bulk renewable power, interconnection agreements and studies might be underdeveloped or nonexistent. Even if utilities don’t explicitly request them, developers still need to anticipate potential grid challenges.
Future-proofing your project portfolio is also essential, considering current or anticipated grid congestion and stability issues. Developers mapping out long-term portfolios are increasingly incorporating solar PV and on-site energy storage. As the energy transition progresses, it becomes evident that power electronics alone cannot resolve grid stability issues caused by high renewable penetration. Furthermore, project scale and capacity will matter less as renewable generation increases.
Energy storage offers significant benefits. While not all developers aim for extensive energy storage, all should build resources to include storage in their projects. Although storage might not be a requirement for new bulk power generation soon, including it can help utilities approve projects, especially in constrained grids. UL 1741-listed inverters can manage voltage fluctuations, but only energy storage can address frequency fluctuations.
Lastly, developers shouldn't underestimate the importance of scale. Currently, transmission-level interconnection requirements are mainly associated with MW-scale systems. Over time, similar requirements could extend to residential solar PV systems, as utilities view small, distributed solar and storage assets as behaving like larger ones.
This evolving landscape underscores the need for developers to stay informed and adapt their strategies accordingly, ensuring projects remain resilient and successful in the face of ongoing energy transitions.