Across the United States, there's a boom in wind and solar installations as energy developers and utilities strive toward a carbon-neutral future being driven by market forces, cultural expectations, government mandates and federal tax investment credits to encourage wind and solar development. The U.S. Energy Information Administration (EIA) expects 46.1 GW of new utility-scale electric generating capacity to be added to the U.S. power grid in 2022, 46% of which will be solar, followed by natural gas (21%) and wind (17%).

Pain Point: Trying to Connect to the Grid

While this surge in clean energy will continue to accelerate the transition from legacy fossil fuels to renewables, there's one hurdle that could actually hinder the momentum behind this clean energy boom – interconnecting a newly built renewable energy facility, such as a wind or solar farm, with the power grid. 

The problem is there are so many new renewable projects in the works that some utilities are being challenged to provide the critical service of connecting a new solar power plant or wind farm because they're also dealing with other priorities, such as scheduled maintenance, the phasing out/decommissioning of legacy power plants or substation and grid repair after major storms, etc. 

Our firm, which works with both wind and solar developers as well as utilities, has seen this pain point occur more frequently over the past several years as the volume and scale of renewables projects increases. 

The problem is especially acute where wind and solar projects are built in locations that are ideal for harvesting wind and solar but are some distance from the nearest transmission line. This is due to a declining number of ideal interconnect locations, which is forcing independent system operators to conduct more studies to determine the next best interconnect locations, creating delays reaching into the months, possibly years, because of the backlog of studies currently in place.

All of these barriers are taxing the patience of both developers, who want to get their projects up and running as quickly as possible, as well as utilities, which also want to get renewable projects up and running to meet their commitments to renewable energy, but must balance new developments with meeting the day-to-day needs of their customers.

Alternative Solution: Self-Build Point of Interconnection

There is a solution that may be helpful for some utilities to consider. In some regions of the country, the Transmission Operator (TO) will provide an option for the renewable developer to self-build a Point of Interconnection (POI) substation. Some utilities offer a self-build option so long as the EPC contractor and the engineering firm selected for the project are on the TO's pre-approved list and design the interconnect to the exact specifications of the utility. This option can cut considerable time and costs in connecting a new renewable facility to the electrical grid. 

For example, in designing a substation being built in Oklahoma, Ulteig supported the wind farm developer when it approached the local utility about the self-build option. The utility provided Ulteig their standards and provided the project approval to move forward as long as it was built to the utility's exact standards. 

Building trust with a utility is often at the heart of unlocking the self-build option for a renewable energy developer. Our firm, which currently holds more than 60 Master Service Agreements with power utility clients, has a unique insight into this workaround solution. We have worked on a number of self-build interconnect projects and separately, we have written interconnect standards for a number of utilities. The reality is that most utilities want these renewable projects to interconnect as quickly as possible, and most want to handle the interconnect themselves. However, based on current workloads and manpower, not all utilities are able to get to these projects as quickly as they'd like to. 

In another example where Ulteig supported, a utility in North Dakota told a wind developer they could not handle interconnecting their project based on the schedule as presented. Because they did not have formal self-build standards to provide the developer, they informed the developer they could use the self-build option if they used our firm, based on our experience in working with the utility on previous projects. 

Creating a seamless process

When a location for a renewable project has been determined, a feasibility study needs to be conducted to determine the most feasible spot for the project to interconnect with the grid. It's at this point when a developer will want to raise the self-build option. 

Besides meeting the project's schedule, another key factor will be the cost of the project. This is where developers should pay close attention. Many utilities have alliances with equipment manufacturers that could lower the cost of a project. In some cases, a utility may insist that certain equipment is used for the project. This is where the developer, and their engineering firm, should work with procurement group from the utility to see if there's an opportunity to create a seamless process that satisfies all parties involved. 

If you're a developer who is concerned about how long it may take to interconnect your project with the local grid, I would advise you to check with your engineering firm to see if they hold a master service agreement with the local utility to expedite this process. If your engineering firm does not, then you should inquire with your local TO to explore this option. Consider the number of renewable projects in the development pipeline, I would suggest looking into this option as early as possible in the planning and design process to build it into your plans. 

Another step to consider is to break up the scope of the project into separate elements, which allows the developer and the utility, in consultation with their engineering firms, to share the costs of the project while potentially fostering a more collaborative relationship, which could be useful for future projects involving the same developer and utility. This also may enhance the speed at which the project is developed, too.

As this process is unfolding, it would be wise for utility and developer to consider the possibility for future expansion or modernization within the next five years. For example, if there's a desire to replace aging transmission lines or if there's a possibility that additional power generation will be built in the coming years, these should be factored into planning.

Bottom Line: Meeting Tomorrow's Challenges

For the past 100 years, the utility industry focused on reliability, slowly growing at a steady pace in keeping with our nation's growing population and the needs of business. Today, as we quickly move from legacy energy to clean energy, which is being fueled by federal tax policy and the demands of the public for change, utilities are being challenged by a new urgency. The self-build option for interconnecting the growing number of renewable projects in the pipeline today and anticipated within the coming four to eight years, reflects the new reality of an electrical grid in transformation. As we embrace alternative solutions to meet new challenges, we must never forget about the critical role of standards to ensure the safe, consistent delivery of power to customers throughout the United States.

Chad Crabtree, P.E., is Market Director-Renewables, for Ulteig, a North American engineering firm specializing in infrastructure (power, renewables, transportation and water) with 13 offices nationwide. Crabtree has more than 15 years of experience in the renewables industry. 

Mark Scheid, P.E., is Associate Director for Ulteig's key Power and Renewables clients. Mark is an experienced business development engineer with over 20 years of experience in working with utility companies.