⚡️ A week ago, the Federal Energy Regulatory Commission passed Orders 1920 and 1977, aimed at addressing long-term energy transmission planning, cost allocation, and regulations for permitting + siting decisions for transmission projects. "The queue of projects waiting to connect to the US grid reached 2.6 TW last year, double the size of the existing grid." - Sightline Climate (CTVC) So what was/is holding things up, and how do these new orders aim to help? ⏳ The sheer amount of projects in the pipeline. Per Energy Markets & Policy Group, Berkeley Lab's Queued Up: 2024 Edition noted there are "nearly 11,600 projects ... actively seeking interconnection," and that "solar and battery storage are – by far – the fastest growing resources in the queues. Combined, they account for over 80% of new capacity entering the queues in 2023." ⏳ Rising energy demand continues to grow due to large needs from data centers, manufacturing, EVs, AI, etc. ✅ "One reason the transmission buildout has been so slow to date is that it’s hard to accurately assess and apportion the costs and benefits of a given project." - Canary Media Inc. Order 1920 creates a required list of specific benefits for projects to be evaluated against, which is meant to help with standardization in assessment. ✅ 1920 also requires transmission to update their regional transmission plans (that cover the next 20 years) every 5 years instead of the previously required updates every 10 years. It will be interesting to see how these orders are actioned, what obstacles we still face, and what progress can be made vs the potential pushback from utilities, regional projects, etc. What are your thoughts?
Utilities and regulators have a lot of work ahead to enact new federal grid planning reforms — and to overcome political and financial interests. “Utilities are always going to want to do these local reliability projects that are in their control, but this plan is certainly trying to get us away from that.” Learn more: https://bit.ly/3yzxgIe #FERC #utilities #transmission #renewables #FERCorder1920