FERC Order 2023 implementation exposes gaps in interconnection process: S&P panel

AI generated summary

American Electric Power (AEP) has petitioned for additional reforms in response to the implementation of the Federal Energy Regulatory Commission's (FERC) Order 2023, which aimed to reform the interconnection process for most transmission operators. Panelists at a recent webinar expressed concerns about the need for further changes to address the retirement and replacement of aging fossil-based generation, as well as the potential slowdown in interconnection processes due to penalties for non-compliance. AEP has requested an extended deadline to comply with Order 2023 and urged regulators to address the oversights revealed during the implementation process.

The interconnection backlog has reached 2,200 GW, with the recent addition of 111 GW from hybrid solar-plus-storage projects. While there is optimism that projects will move through interconnection queues more quickly in the future, gaps remain in FERC's recent rulings. Stakeholders are calling for a revisit of decisions regarding penalties and deadlines, raising concerns about potential delays in the interconnection process. As demand for electricity grows, grid operators like PJM Interconnection are facing challenges in meeting supply needs, with a focus on increasing interconnections and addressing generator retirements to support the ongoing energy transition.