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The Power of Surplus Interconnection Service: A New Era for Energy Production

As the demand for electricity in the United States escalates, decision-makers at the state and utility levels are grappling with how to effectively satisfy consumer needs while being mindful of costs. With the average timeframe of five years required for new energy projects to receive grid connections, finding innovative solutions is paramount. Enter Surplus Interconnection Service (SIS), an approach that promises to expedite the process of improving electricity supply significantly.

Understanding Surplus Interconnection Service (SIS)

Surplus Interconnection Service provides a unique pathway for integrating new power generation or storage resources. Unlike traditional processes that position power plants in a long queue for grid access, SIS enables energy producers to bypass this congestion. By co-locating at existing power plants—where underutilized capacity often lies—SIS harnesses potential energy that can be quickly channeled into the grid.

Since the Federal Energy Regulatory Commission (FERC) authorized widespread use of SIS in 2018, any power plant with a capacity greater than 20 megawatts has been able to apply. This has opened doors for a diverse range of energy sources—from natural gas and coal to solar and wind—using their existing infrastructures to add SIS resources, such as solar panels or battery storage.

The Challenge of Power Source Expansion

The interconnection process, essential for power plants wishing to connect to the grid, is frequently prolonged and complex. New projects enter a queue managed by grid operators, requiring detailed assessments and infrastructure upgrades before approval is granted. With several power plants capable of producing more energy than they are currently using, SIS presents an opportunity to effectively utilize this surplus for new generation and storage.

For instance, natural gas plants might operate only a few days a year during peak demand, while missing opportunities at other times. Through the integration of SIS, these facilities can add renewable resources, thereby increasing their output year-round. Solar farms can similarly leverage SIS by installing storage solutions, paving the way for energy availability during nighttime hours.

The Benefits of SIS

1. Enhanced Energy Deployment: SIS allows for speedy integration of new energy resources while traditional queues are ongoing, facilitating quicker access to electricity.

2. Minimized Land Impact: SIS installations can often be situated on existing power plant sites, limiting the need for new land development, which is crucial for preserving natural habitats.

3. Increased Reliability: Combining the output of traditional plants with SIS resources can provide a more dependable energy supply by ensuring availability even during down-time.

4. Reduction of Grid Congestion: By optimizing energy production from existing plants, SIS can alleviate grid congestion, ultimately benefiting consumers through lower electricity prices.

5. Cost-Effective Transmission Development: SIS facilitates energy supply without the necessity for constructing new, expensive transmission lines, which often consume substantial time and resources.

Policies to Promote SIS

State governments hold significant power to encourage SIS adoption through various measures. These include:

• - Planning Requirements: Mandating utilities to analyze SIS projects within their planning sessions can foster broader consideration of these solutions.
• - Regulatory Consideration: Ensuring that SIS benefits are factored into resource planning by regulators can optimize utility strategies.
• - Economic Development Incentives: Financial incentives for SIS development can align with existing energy programs, facilitating a smoother adoption pathway.
• - Streamlined Permitting and Siting: Clearing bureaucratic roadblocks and expediting rules can amplify SIS project deployment.

Conclusion

Surplus Interconnection Service stands out as a promising strategy for states looking to quickly enhance their power generation capabilities, ultimately providing advantages to both energy suppliers and consumers. By leveraging this underutilized approach, states can better navigate the increasing demand for electricity while promoting sustainable energy solutions. For more information about how SIS can be implemented, visit The Pew Charitable Trusts for additional resources and guidance.