New legislation introduced in the House and Senate aims to prioritize dispatchable power plants in interconnection queues. Representative Troy Balderson from Ohio, who sponsors the bill in the House, explained that this legislation empowers grid operators to quickly identify and process essential projects that ensure the reliability of our power grid and meet the growing energy demands of the country.
Balderson highlighted that he had introduced similar legislation in the previous Congress, but it did not progress. In the Senate, Senators John Hoeven of North Dakota and Todd Young of Indiana have presented a companion bill.
Over the last decade, there has been a significant increase in wind, solar, and more recently, storage projects seeking to connect to the power grid, according to data from the Lawrence Berkeley National Laboratory. In 2023 alone, solar interconnection requests reached 1.1 terawatts (TW), while storage requests were 1 TW. Wind requests amounted to 366 gigawatts (GW), and gas-fired projects totaled 79 GW. New generating projects faced an average wait of five years from entering the interconnection process to becoming operational.
To address delays, grid operators have begun reforming their interconnection processes, including tightening financial requirements to deter speculative projects. Recently, the Federal Energy Regulatory Commission (FERC) has been reviewing a proposal from PJM Interconnection to fast-track certain generating projects that meet reliability criteria.
The new legislation, known as the GRID Power Act, would require FERC to evaluate proposals from regional transmission organizations (RTOs) and independent system operators (ISOs) within 60 days. These organizations must demonstrate that the proposed projects would enhance the grid’s reliability and resilience. The bill defines dispatchable power as reliable energy sources that provide stable electricity supply as needed to maintain grid stability.
Once approved, FERC would need to begin a rulemaking process within 90 days of the bill’s enactment and complete it within 180 days.
The Electric Power Supply Association, representing independent power producers, has expressed support for the legislation, emphasizing the need for grid operators to have the flexibility to manage current and future reliability challenges effectively.
Other backing for the bill comes from various organizations, including the American Exploration & Production Council, the Ohio Oil and Gas Association, the Ohio Chamber of Commerce, and the Ohio Manufacturers’ Association.