Solar Industry Update
FERC Issues Order 2023
Impact
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Once implemented, FERC rules will improve and harmonize existing grid interconnection best practices but do not
represent disruptive, structural changes that may be necessary to install the levels of solar and wind necessary to
decarbonize the grid by 2035. Such measures may include:
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Reforms to the cost allocation of grid upgrades (e.g., in Texas, upgrades are borne by the consumer, not the project).
Allowing interconnections ahead of all grid upgrades.
A more proactive approach for grid planning that identifies areas with high wind and solar potential and preemptively
builds out system capacity in those regions.
Comparison of U.S. annual grid investment scenarios
•
Many of the upgrades occur now as developers seek
interconnection.
$ billion
160
140
Net Zero Scenario
120
100
With IRA
80
Historical
60
40
m
2020
2025
2030
NREL 11
Permitting reform to significantly build out transmission assets.
BNEF states that current process has deterred lots of projects
that would help.
After the order was issued, BNEF did not change its outlook on
U.S. solar and wind deployment, as it already assumed some level
of interconnection process improvements.
Source: BloombergNEF, "US Takes a Step to Clear Grid Backlog But a Leap Is Needed."
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