US approves federal interconnection standard for small generators
WASHINGTON, DC, US, May 25, 2005 (Refocus Weekly)
Small generating facilities in the United States will benefit from new procedures which “reduce the uncertainty, time and costs associated with connecting systems to the grid.”
The Federal Energy Regulatory Commission standard procedures affect
interconnection for facilities under 20 MW of capacity, and the rule directs
public utilities to offer “non-discriminatory, standardized interconnection
service for small generators and to provide technical procedures for connecting
to the grid.” Public utilities must provide an agreement with contractual
provisions for interconnection and which explains who pays for improvements to
the utility's electric system, if needed to complete the interconnection.
The rule allows simpler interconnection for systems of less than 2 MW and even
simpler procedures for systems of 10 kilowatts or less that use inverters. The
rule applies only to interconnections with facilities subject to FERC
jurisdiction, and does not apply to local distribution facilities.
“In light of the importance of the rule-making, the Commission has designated
it as Order No. 2006,” which will “preserve grid reliability, increase
energy supply, and lower wholesale electric costs for customers by increasing
the number and types of new generators available in the electric market,
including development of non-polluting alternative energy resources,” explains
FERC. The rule reflects input from a broad group of utilities, small generators
and other stakeholders, “who came together to recommend a unified approach to
small generator interconnection.”
The rule reflects many of consensus positions and those of the National
Association of Regulatory Utility Commissioners, and harmonizes state and
federal practices by adopting many of the interconnection practices recommended
by NARUC. “It should help promote consistent, nationwide interconnection rules
for small generators,” it adds.
“Advances in technology have led to a growing industry of small power plants
that offer economic and environmental benefits,” says FERC chair Pat Woods.
“Standardization of interconnection practices across the nation will lower
costs for small generators, help ensure reliability, and help ensure
reasonably-priced electric service for the nation’s wholesale power
customers.”
Two years ago, FERC issued a final rule for facilities larger than 20 MW and
proposed a rule for small generators. Of the 70 entities that commented on the
proposed rule, most supported efforts to remove barriers to the development of
small generators.
The final rule, ‘Standardization of Small Generator Interconnection Agreements
& Procedures,’ takes effect in two months. Regional transmission
organizations and independent system operators have an additional 90 days to
comply.
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