Key Highlights:
- In the upcoming five to ten years, enhancing access to data and improving processes related to Distributed Energy Resources (DER) interconnections is crucial for utilities and grid operators, as noted in a recent U.S. Department of Energy report.
- The report highlights various challenges in interconnecting different types of DER technologies, such as wind, solar, and energy storage.
- Delays in interconnection can significantly deter developers from pursuing projects in certain states, especially in non-residential markets.
Contextual Insights:
Between 2010 and 2023, the number of residential rooftop solar systems in the U.S. skyrocketed from 89,000 to 4.7 million. Meanwhile, the capacity for community solar systems expanded from 1 GW to 7 GW. Additionally, the global energy storage capacity is anticipated to increase fourfold by 2030, primarily spurred by the rise of electric vehicles.
However, challenges remain, as waiting times for interconnections, even for small DERs, are on the rise. For instance, in California, the average waiting time for systems between 50 kW and 100 kW has grown from around 60 days in 2010 to 100 days in 2022.
This issue affects systems of all sizes, with some 100 kW solar installations potentially waiting in line for years to connect.
The report defines DERs based on three main criteria:
- Systems connected to distribution networks not governed by federal regulations.
- Systems that range from small-scale, behind-the-meter setups to larger systems of less than 80 MW.
- Technologies that require interconnection studies, including wind and solar, though typically excluding electric vehicles.
To improve DER interconnection processes, the report offers four main recommendations: enhancing transparency in data sharing, streamlining processes to alleviate bottlenecks, promoting cost efficiency to minimize expenses for ratepayers, and improving the performance of inverter-based DERs to ensure grid reliability.
Experts noted that there are already some positive steps taken by utilities, including the development of hosting capacity maps that enable better access to grid data for developers. Suggestions also include adopting flexible interconnection strategies, standardizing timelines, and re-evaluating cost-sharing models.
Achieving these improvements will require innovation, especially in more congested regions, to effectively integrate DERs into the grid.
The roadmap establishes five goals for improving DER interconnection: shorter waiting times for interconnections, higher completion rates, better access to interconnection data, minimizing grid disturbances related to inaccurate modeling, and quicker restoration of service after outages.
By 2030, it aims for a median interconnection time of one day or less for systems smaller than 50 kW, completion rates above 99%, and a substantial reduction in outage duration, along with comprehensive queue data availability across all U.S. states and territories.