Beyond FERC Order 2023: Considerations on Deep Interconnection Reform

Abstract

In late July 2023, the US Federal Energy Regulatory Commission released its much-anticipated rule on interconnection reform, Order 2023. This policy brief explores a deeper reform option known as connect and manage. This less restrictive interconnection approach could speed the deployment of resources in a way that can be managed after their integration with the grid, leading to a larger volume of interconnected generation capacity without sacrificing reliability. The brief summarizes connect and manage in relationship to existing interconnection procedures and reviews foundational issues with current processes not addressed by Order 2023; identifies opportunities to improve energy-only interconnection procedures and potential solutions to manage attendant complications with curtailment risk and hybrid resources; and discusses linkages of interconnection, transmission planning, and competitive procurement in alignment with a connect and manage approach, particularly in jurisdictions not governed by independent system operator/regional transmission organizations (ISO/RTOs).