Approval granted by FERC for expedited review of interconnections in MISO and SPP transmission systems
Federal Energy Regulatory Commission Approves Fast-Track Interconnection Processes for MISO and SPP
The Federal Energy Regulatory Commission (FERC) has given its approval to fast-track interconnection processes proposed by the Midcontinent Independent System Operator (MISO) and the Southwest Power Pool (SPP). These processes are designed to accelerate the connection of critical new power resources to the grid, addressing urgent reliability and resource adequacy needs.
Accelerated Connection for Reliability-Critical Projects
Under the MISO Expedited Resource Addition Study (ERAS) program, a limited number of projects can pass through a fast lane if they address verified resource adequacy gaps or new load demands in specific local resource zones. Projects must be operational within 3 to 6 years and validated by the relevant retail electric authority.
Selection Criteria Favor Immediate Needs
Projects prioritized under ERAS tend to be those that can rapidly fill reliability voids, potentially skewing selection towards gas-fired resources. This could potentially disadvantage renewable projects that do not align as directly with immediate resource adequacy requirements or have longer development timelines.
Potential Queue Displacement
The introduction of fast-track processes allows some projects to "jump ahead" of others in the traditional interconnection queues. This has raised concerns from renewable developers and industry stakeholders who argue that such shortcuts might undermine fairness, competitive principles, and increase uncertainty for projects waiting in standard queues.
Short-Term Solution While Long-Term Reforms Proceed
Both MISO and SPP’s fast-track programs are described as temporary stopgaps designed to alleviate immediate pressure on grid reliability while broader interconnection reforms are developed. For example, MISO’s ERAS program will sunset in August 2027, aiming to bridge near-term needs without replacing comprehensive queue reform efforts.
Regulatory and Stakeholder Collaboration
FERC’s approval reflects collaborative development with stakeholder input and regulatory oversight intended to maintain transparency and fairness, although some opposition remains due to concerns about process equity and market impacts.
Gas-Fired Power Plants as Main Beneficiaries
Gas-fired power plants are likely to be the main beneficiaries of the fast-track processes, with standalone batteries also potentially being included in the fast-track reviews. The PJM Interconnection, another regional transmission organisation, selected approximately 11.8 GW for a fast-track review process in May, with gas-fired generation making up nearly 70% of that capacity.
Impact on Renewable Energy Projects and Queue Placement
The fast-track interconnection processes approved by FERC for MISO and SPP aim to reduce grid reliability risks by prioritizing rapid interconnection of critical projects, but they also risk disadvantaging some renewable energy projects in the interconnection queues by creating exceptions to the traditional first-come, first-served order.
MISO and SPP's Review Processes
In MISO's review process, state utility commissions or other "relevant electric retail regulatory authorities," or RERRA, will vet potential projects. SPP plans to issue a 30-day notice that it will open a one-time 30-day window for accepting ERAS applications.
Opposition and Support
The Sierra Club has opposed the MISO and SPP proposals, stating that FERC’s decisions make it possible for gas plants to cut in line at the expense of clean energy projects that have been waiting for years to interconnect. On the other hand, Carrie Zalewski, ACP vice president of markets and transmission, stated that maintaining reliable and affordable power requires a diversified grid and predictable measures to bring new resources online.
The American Clean Power Association has responded to FERC's decisions, stating that they could disrupt the development of projects waiting in interconnection queues. ClearView expects a similar outcome for MISO and SPP in the fast-track review process. SPP currently has 69 "thermal" projects in its interconnection queue totaling about 30 GW. MISO has 63 gas-fired projects in its interconnection queue totaling about 33.4 GW of summer-rated capacity.
In summary, the fast-track interconnection processes approved by FERC for MISO and SPP aim to balance urgent grid needs with developing longer-term, fairer interconnection reforms. These measures are temporary and part of ongoing efforts to ensure a reliable and diverse power grid for the future.
- The fast-track interconnection processes, primarily benefiting gas-fired power plants, could potentially disadvantage renewable energy projects that have longer development timelines, leading to concerns about fairness and competitive principles in the environmental science and industry sectors.
- The Federal Energy Regulatory Commission's approval of the fast-track processes for MISO and SPP is a step towards addressing climate-change mitigation needs, as these processes aim to reduce grid reliability risks and accelerate the connection of critical new power resources, including renewable energy projects.
- The introduction of these fast-track processes will influence the finance and energy sectors, as projects jumping ahead of others might impact the predictability and certainty of project placement in standard queues, potentially leading to increased uncertainty and potential delays in renewable energy project development.
