DOE’s Draft Plan Could Slash Solar Interconnection Delays

olar power push advances quickly, with solar and solar-plus-storage sector fueling much of the expansion. However, for all the excitement surrounding new solar projects, one major hiccup is slowing the progress: plugging them into the power grid.

Right now, adding big solar and solar-storage projects to the power grid can be pretty slow and expensive, mainly because of the costly infrastructure upgrades required. But, there’s progress in sight: The Department of Energy has put out a draft roadmap to streamline how distributed energy resources—like solar—are connected to the grid. Join SunValue as we explore what the DOE is proposing and how it could give the US solar sector the boost it needs.

The Bottleneck in Solar Growth

The U.S. solar sector is running into a roadblock when it comes to interconnecting solar panels and storage to the grid, and it’s slowing down the push for clean energy. The main issue is the skyrocketing demand for renewables, which has grid operators overwhelmed with a flood of interconnection requests.

A report from the Solar and Storage Industries Institute (SI2) shows that by the end of 2023, more than 2,600 gigawatts (GW) of solar, wind, and storage projects were stuck in this bottleneck. Interestingly, 42% of these were solar ventures, and 40% were storage facilities.

Source: Lawrence Berkeley National Laboratory

It now takes almost five years for solar projects to get through the grid connection process, quite a difference from the two-year timeline we had back in 2008. Additionally, the latest data from Lawrence Berkeley National Laboratory highlights that the total capacity in the queue is over twice the current U.S. generating capacity. Take a look below to see how it has grown compared to the installed capacity from 2010 to 2023.

Source: Lawrence Berkeley National Laboratory

Due to long and unpredictable interconnection study processes, a lot of proposed projects end up stuck in limbo, with most requests eventually getting canceled or rejected. In 2023, over 200 GW of projects left the queue, while only 30 GW actually got finished. Even though the Federal Energy Regulatory Commission (FERC) introduced major interconnection reforms in 2023, they haven't quite taken hold in most areas yet.

Draft Plan to Streamline Solar Interconnections

The DOE’s draft roadmap lays out a range of suggestions to tackle the hurdles in the solar interconnection process. It focuses on cutting down delays, reducing sky-high grid upgrade costs, improving transparency, and updating old technical standards.

1. Increasing Data Transparency

The first step in solving the problem is to help developers understand the grid. Without easy access to crucial data, they are left in the dark, which causes setbacks and slows down interconnection progress. The roadmap promotes increased sharing of data between the utilities and other stakeholders. A common framework for data collection, especially for large distributed generation projects, will enable the developers handle grid studies and interconnection tasks.

Key Steps:

• Set clear rules for collecting and sharing grid data.
• Standardize project specifications and cost estimates for more realistic planning.
• Introduce new tools to better analyze grid capacity and forecast impacts.

2. Bringing Down the Costs

Connecting to the grid can be quite expensive, especially if unexpected upgrades are needed. One promising step is to change how these costs are allocated. Instead of leaving developers with the full bill when their project causes a grid upgrade, the roadmap recommends a more friendly “cost-sharing” approach.

Key Steps:

• Revise cost-sharing models to ensure developers are compensated whenever their enhancements benefit other projects as well.
• Consider joint studies where different projects can share the cost of necessary upgrades.
• Create a reserve fund backed by small fees from new projects to help cover the costs of crucial grid improvements.

3. Speeding Up the Process

Dragging interconnection timelines have been a major roadblock, slowing down countless clean energy projects. The proposed plan focuses on reforms to make these procedures simpler, mainly by adding automation. Through automating parts of the interconnection studies and application processes, utilities can handle the increasing number of requests more efficiently.

Key Steps:

• Create educational tools and self-help resources for smaller projects before they apply.
• Establish clear guidelines for commercial readiness on larger projects, helping to cut down on waiting times.
• Introduce fines for delays in interconnection studies and use automation to simplify the application steps.

4. Keeping the Grid Stable and Safe

As more renewables get connected to the grid, it's vital to keep the grid both stable and protected. To do this, the plan suggests improving how we model the grid and adopting new rules to handle things like energy storage and electric vehicle charging. Cybersecurity is also a big focus, with new guidelines for preventing hacks when interconnecting solar panels and other renewable sources.

Key Steps:

• Craft innovative protection mechanisms
• Speed up implementing standards like IEEE 1547 to ensure the projects are integrated smoothly and securely.
• Set up strong cybersecurity measures for interconnected systems to keep grid operations safe.

5. Adopt Flexible Grid Connection

The roadmap also promotes flexible interconnection. This approach lets projects connect to the grid without the need for costly upgrades right away. Instead of overloading the system, they can simply reduce their output during congestion or peak demand times. This method makes it easier, cheaper, and faster for more energy ventures to come online.

Key Steps:

• Offer flexible interconnection options
• Use smart technology to watch grid capacity in real-time and adjust energy flows as needed.
• Promote policies that support flexible interconnection deals.

6. Using Smart Inverters

Smart inverters can control how solar systems and other clean energy resources connect to the grid. Unlike typical inverters, these smart alternatives can adjust their output in real-time to meet the grid's requirements. This feature helps maintain voltage and frequency and can even give reactive power support.

Key Steps:

• Push for quicker adoption of smart inverters by creating clear performance standards.
• Add smart inverter features into connection agreements to strengthen the grid.
• Foster partnerships between regulators, utilities, and green energy producers to ensure smart inverters are implemented broadly and effectively.

DOE's Ambitious Plan to Revolutionize Grid Interconnections in 2024

The U.S. Department of Energy (DOE) has released a groundbreaking Transmission Interconnection Roadmap in 2024, aiming to address the massive backlog of clean energy projects seeking grid connection.

With nearly 2.6 TW of capacity in interconnection queues, a 27% increase from 2022, the need for reform is critical. The roadmap outlines innovative solutions to streamline the process, including improving data transparency, adopting flexible interconnection options, and leveraging smart inverter technology.

These measures could significantly reduce the current five-year average wait time for project connections, potentially allowing systems up to 80 MW to be operational within 90 days by 2030.

The DOE's initiative, supported by the $5 billion Grid Innovation Program, represents a pivotal step towards achieving the Biden-Harris Administration's goal of 100% clean electricity by 2035.

A Smoother Future for the Grid

The DOE is setting the stage for big changes. Their strategy invites everyone to the table — from regulators and utilities to developers — to craft an energy system that’s both more efficient and accessible. Additionally, they are ready to back it up with technical support and funding.

If the roadmap unfolds as planned, the next decade could see a cleaner, smarter, and more efficient grid powered by solar energy and other renewables. By 2030, systems up to 80 MW could be up and running in just 90 days—a major leap from the current lengthy process. This could reshape our power infrastructure, turning a complicated interconnection process into a smooth, efficient pathway for clean energy growth.

Sources:

https://www.energy.gov/sites/default/files/2024-09/Draft%20DER%20Interconnection%20Roadmap%20for%20RFI.pdf

https://www.ssii.org/wp-content/uploads/2024/04/SI2-Interconnection-Whitepaper-04.25.24.pdf

Federal Energy Regulatory Commission (FERC) introduced major interconnection reforms in 2023