This week, a panel of energy regulators has approved a groundbreaking rule that is poised to revolutionize the integration of renewable energy into the nation’s electric grid.
Passed on Thursday by the Federal Energy Regulatory Commission (FERC), this rule aims to expedite the often lengthy process for new energy projects to connect to the grid.
According to FERC, new projects currently face an average wait time of up to five years, resulting in over 2,000 gigawatts of power being stuck in queues at the end of last year. To put that into perspective, this capacity is equivalent to the combined output of all the power plants in operation across the United States.
While the rule is not exclusive to renewable energy, it is estimated that approximately 95% of the power awaiting connection is from carbon-free sources such as solar, wind, and battery storage.
This development comes at a time when the Inflation Reduction Act is providing substantial subsidies for the construction of more environmentally friendly energy projects in the coming years.
The American Clean Power Association, representing renewable companies, celebrated the new rule as a “defining step towards facilitating the predictable and cost-effective integration of clean energy resources into the electric grid” in a written statement.
This rule streamlines the process by grouping projects together for more efficient evaluation, rather than examining them individually. Furthermore, power providers will face penalties for failure to complete required studies within the allotted time.
Despite receiving praise from the renewable energy industry and climate advocates, there are still calls for more comprehensive action to improve power transmission and enhance renewable energy adoption nationwide.
Gregory Wetstone, President and CEO of the American Council on Renewable Energy, urged the commission to address the grid backlog by “finalizing a rulemaking that mandates comprehensive long-term transmission planning,” reforming the inefficient funding model for new transmission lines, and fortifying the grid’s capacity to facilitate the transfer of electricity between different regions.
