A successful energy transition depends on the timely interconnection of new resources to the electric grid at both the transmission level and the distribution level. But in both cases, existing interconnection processes have struggled to deliver at this crucial moment when clean energy resources are poised to transform how we generate and use electricity. Transmission-level interconnection queues across the country have been plagued by backlogs and delays that impose uncertainty regarding the timing and cost of interconnecting new resources. At the distribution level, in regions where distributed energy resources such as solar have been widely deployed, timelines for interconnecting new resources have dragged out and costs have skyrocketed.
Sometimes it takes a crisis to drive change, and it is an exciting time for interconnection policy wonks because change is coming. For years, Foley Hoag has been helping clients navigate an increasingly challenged interconnection process to bring their clean energy projects online. In this issue, we highlight FERC Order 2023, which is poised to dramatically change transmission-level interconnection processes across the country. Implementation of Order 2023 is underway as ISOs, RTOs, and other transmission providers are working to craft compliance plans that will set the rules for interconnection processes going forward. The details of these plans will be critical to the success of the reforms.
Order 2023 is not the only process driving interconnection reforms. As discussed in this issue, the Department of Energy recently weighed in with an RFI and a draft roadmap with broad proposals for improving the interconnection process. And some states are showing a willingness to consider new approaches to interconnecting distributed resources that reflect the changed demands being placed on our distribution systems. For instance, Massachusetts has embarked on an "electric sector modernization plan" process that aims to plan the distribution system proactively to meet future needs.
Significant reform of interconnection processes at all levels is overdue, and it is crucial that policy makers and stakeholders seize this moment and deliver the best possible results. Our team will continue to monitor these processes as they unfold.
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