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As the installed capacity of solar PV systems in the U.S. continues to expand, and more regions achieve high penetration rates of renewable energy, grid congestion has become a pressing concern for numerous large-scale projects. For project stakeholders who lack experience or fail to conduct thorough due diligence upfront, unexpected interconnection issues due to power limitations or potential grid stability problems can lead to costly surprises that delay project timelines.
In my role as both an owner’s engineer and independent engineer at Pure Power, my expertise allows us to help EPC and developer clients accurately identify, analyze, and quantify any potential impacts caused by grid congestion on the projects we support. Here, I’ll discuss how Pure Power can assist in ensuring fast and predictable project development, even when dealing with constrained or potentially constrained grids, through proper planning and insights.
### Interconnection Technical Studies
At the beginning of a large-scale project, the developer usually works with the regional grid operator to initiate a site-specific study that documents the impact of adding extra generation capacity. This study identifies any necessary grid upgrades before interconnection takes place. However, without proper planning, particularly when selecting sites for solar installations, a project owner or developer might purchase a suboptimal site for a large-scale solar PV installation before completing the impact study. Interconnection studies generally assess:
- **Power Capacity Limitations:** Existing regional transmission systems might already be at or nearing full capacity, making it expensive or even impossible for developers to connect PV assets to the grid. Since developers usually cover most of the costs associated with required interconnection upgrades, fully loaded transmission systems can pose economic challenges to a project.
- **Grid Stability Considerations:** Outdated or overburdened regional transmission grids may face power quality stability issues when incorporating variable renewable resources. With proper planning and enough time in the project timeline, stakeholders can address these stability concerns by choosing appropriate equipment and increasingly installing onsite energy storage systems.
To prevent sinking money into a project that could face insurmountable grid-related issues later, project stakeholders must perform adequate due diligence regarding project location and site characteristics related to grid capacity and interconnection early on. Without proper guidance and planning, the momentum of the project might lead to rushed timelines for conducting the interconnection study and efficiently incorporating its findings into the project design and cost estimates.
*Courtesy National Association of Home Builders*
### Utility-to-Utility Experience and Perspective
Given the wide variation in an individual utility's experience with bulk renewable power generation across the U.S., their interconnection study requirements and the sophistication of those requirements differ significantly.
- **A Brief History of High-Penetration Renewables:** Outside the U.S., Germany was among the first countries to adopt renewables on a large scale, offering a relevant historical perspective. Germany’s pioneering experience with high penetration levels of renewables on its grid began around 2011. Back then, utility-interactive inverters lacked the grid-support functions available today in UL 1741 SA-listed "smart" inverters. Large-scale PV project interconnection requirements were poorly understood, leading to grid instability issues like frequency and voltage fluctuations that created national power quality problems.
- **The Benefits of Experienced Utilities:** In the U.S., many utilities in states like California and Florida, as well as regions such as New England, require interconnection power studies and are adept at interpreting them. They also understand the potential impact of new power generation, especially from variable sources like solar and wind, on transmission and distribution infrastructure. These utilities allocate internal resources to the interconnection application and review processes. Although this process might feel burdensome to some developers, it pushes them to conduct appropriate due diligence, which often identifies and mitigates costly issues later in the project timeline.
- **The Pitfalls of Inexperienced Utilities:** Conversely, in states and regions with little experience in bulk renewable power generation, interconnection agreements and related studies may be rudimentary or nonexistent. Just because a utility doesn’t request something doesn’t mean you don’t need it. Inexperienced utilities might lack safeguards to prevent developers from proceeding deeply into equipment selection and procurement before grid congestion or stability issues arise.
### Looking Toward the Future
Future-proofing your project portfolio is another consideration influenced by current—or future—grid congestion or stability issues. Developers mapping out a 3- or 5-year project portfolio are increasingly recognizing the importance of solar PV and on-site energy storage. As the energy transition progresses, it will become evident that power electronics alone cannot solve grid stability issues resulting from high penetrations of renewables on local or regional transmission networks. Moreover, from a planning perspective, project scale and capacity will matter less and less as renewable generation penetration increases.
- **Leverage the Benefits of Energy Storage:** Not all developers aim for extensive energy storage, but all should build resources to include storage in their project portfolios. While energy storage may not be a requirement for new bulk power generation in the near future, including a storage component might earn approval from the utility, especially when dealing with constrained grids or grid stability concerns. For instance, UL 1741-listed solar PV inverters can manage and correct voltage fluctuations, but only energy storage can handle frequency fluctuations.
- **Do Not Overlook—or Misinterpret—Scale:** Currently, developers view transmission-level interconnection requirements and studies for new bulk power generation as concerns primarily for MW-scale systems. However, similar requirements are likely to trickle down to residential solar PV systems over time. From a utility’s perspective, the virtual aggregation and control of small, distributed solar and energy storage assets function similarly to larger ones.
By addressing these factors early and comprehensively, developers can better navigate the complexities of integrating renewable energy into the grid, ensuring smoother project execution and long-term success.