Cliff Graham on LinkedIn: Democratic bill mandates FERC interconnection reforms to bring new… (2024)

Cliff Graham

Renewable Development

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Another Interconnection queue oversubscription post - IMHO, the saturation and timing to get through the queue process has little to due with process, but the these mistakes by lawmakers: 1) Lack of the ITC credit being included for transmission in the IRA - Per a study by GridLab, the U.S. needs to spend roughly $2.2 TRILLION to see the energy transition. Can the ratepayer bear these costs? Utilities are being prudent by focusing on reliability upgrades, albeit, they due take longer than needed. I would have preferred that the IRA focused on transmission more and less on generation. 2) The IRA caused most of this exuberance on the industry (we're in a bubble). Here is an example, new MISO South queue applications in 2020 were 48 application (6.5 GW), in 2022 this exploded to 369 (70 GW) or 3-4x times the total load. This is an impossible number to study due to the massive variables, outcomes, and complexities. PJM and CAISO have closed their queues because they frankly do not need more resources (they have too many to study). Please explain to me how process fixes this study dilemma? 3) Load is growing exponentially, in the 80'-90' with the offshoring of manufacturing and energy efficiencies lured the U.S. into a false sense of "energy" security. Today with onshoring, data centers, AI centers, distribution centers, electric vehicles, and electrification all of the legacy transmission slack has been taken without any master plan to connect the national grid (like the highway systems). Note the recent announcement of Amazon's Cumulus Data Center connecting to the nuclear electric station on Pennsylvania. This isn't any energy issue, it's a delivery of capacity issue. What can be done? 1) National Transmission plan with some sort of funding mechanism (ITC, FERC rules similar to pipelines, etc), 2) National water and hydrogen pipeline system coast to coast along the highways systems too connect the ISOs and allow storage through line packing (allows hydrogenation of the transportation system, cities, and airports while fixing the water issues in the U.S.). FERC already has jurisdiction to make this occur. 3) Screening mechanism to eliminate the "noise" in the queue that do not increase the cost to ratepayers. The ideas in this legislation, FERC 2023, etc only hurt ratepayers. Site control, allowing more curtailment (loss of PTCs), higher posting increase the LCoe significantly. By my calculation and talking to other top tier developers, the success rate of new Greenfield projects post IRA is around 10-20% (down from 60%). Having to hold land, higher cancelation cost, etc have increased the cost to develop a new site from just a couple cents a watt, .015-.3/watt to .15-.20/watt. That would make the Greenfield siting of projects 16-23% of the total proejct's Capex. Can we stop talking about queue reform and start talking about a plan? #climate #energy #PV #solar #windpower #cleantech #renewable

Democratic bill mandates FERC interconnection reforms to bring new resources online faster utilitydive.com

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Nathan Krieger

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Does the process need improvement? Yes, but you are spot on - the core issue is that we can build all the generation we want, but it can’t get anywhere with the state of today’s infrastructure. Ballooning lead times on HV equipment isn’t helping either.

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Oneida McMann

Team Lead - Prospecting at UKA NA

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Absolutely correct Cliff! We need a transmission plan! Desperate for improved infrastructure to generation.

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Ravi P. Singh

Renewables Operation & Asset Management

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We have cart full of generation but no horses to take it forward. The one that are in operation loosing revenue because of curtailments and congestion basis.

Aaron Smith

Energy Development l Problem Solving l Market Strategy

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Spot on as usual, Cliff.

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Cliff Graham on LinkedIn: Democratic bill mandates FERC interconnection reforms to bring new… (35)

Cliff Graham on LinkedIn: Democratic bill mandates FERC interconnection reforms to bring new… (36)

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