Interconnection Cost Analysis in ISO-New England

Electric transmission system operators (ISOs, RTOs, or utilities) require new large generators seeking to connect to the grid to undergo a series of impact studies before they can be built. This process establishes what new transmission equipment or upgrades may be needed before a project can connect to the system and assigns the costs of that equipment. Berkeley Lab has collected interconnection cost data for 194 projects in New England from interconnection studies performed between 2010 and 2021. Project-level cost summary data are available for download on this page. We find: -Interconnection costs have grown over time, especially for projects that withdraw. -Interconnection costs are highest for onshore wind, followed by solar and storage. Natural gas and offshore wind projects tend to cost less to interconnect, in comparison. -Economies of scale exist for solar and possibly storage projects, but not for other resource types. -Wind and solar projects requesting capacity network resource interconnection service have higher interconnection costs, despite being evaluated using the same interconnection standard in the analyzed studies. -Low and high interconnection costs can be found throughout the ISO-NE footprint. -Costs are split fairly evenly between investments at the point of interconnection and within the broader network for active and withdrawn projects, while complete projects incur most costs at the point of interconnection

Interconnection Cost Analysis in the NYISO Territory

Electric transmission system operators (ISOs, RTOs, and utilities) require large new generators and storage resources seeking to connect to the grid to undergo a series of impact studies before they can be built. This process establishes what new transmission equipment or upgrades may be needed before a project can connect to the system and assigns the costs of that equipment. Berkeley Lab has collected interconnection cost data from interconnection studies from the New York Independent System Operator (NYISO), representing at least 43% of all new unique generation and storage resources requesting interconnection in NYISO from 2003 through 2019. Project-level cost summary data are available for download on this page. We find: -Average interconnection costs have grown as the number of interconnection requests have escalated. -Upgrades both at the point of interconnection and in the broader network have driven cost increases. -Applicants still actively working through the interconnection process have higher interconnection costs than historical projects, but lower costs than projects which have recently withdrawn or been completed. -Solar projects tend to have higher interconnection costs than other resource types. -Larger generators have greater interconnection costs in absolute terms, but economies of scale exist on a per kW basis for solar and wind projects. -Cost estimates increase as projects complete more studies in the interconnection process. Berkeley Lab will publish a series of short analytical papers of generator interconnection costs to the transmission system for MISO, PJM, SPP, ISO-NE and NYISO, which you can find at https://emp.lbl.gov/interconnection_costs

Generator Interconnection Costs to the Transmission System - Summary Briefing

Berkeley Lab has published a series of briefs analyzing interconnection cost trends across five U.S. wholesale electricity markets. The series employs extensive data collection (2500+ project-level interconnection cost estimates) and analysis for MISO, PJM, SPP, NYISO, and ISO-NE. The data provides developers, regulators, policymakers, and other stakeholders with critical insights about interconnection cost data that are often difficult and inefficient for the public to obtain. This presentation offers a summary of the analyses followed by key results for each market. We find: -Interconnection queues have exploded over the past years, resulting in lengthy study processes with high applicant withdrawal rates. -Interconnection cost estimates are not available as pre-request information but require a lengthy interconnection study process. Final cost estimates remain difficult to collect. -Interconnection costs have grown substantially over time in all studied regions. -Projects that have completed all required interconnection studies have the lowest cost compared to applicants still actively working through the interconnection process or those that have withdrawn. -Upgrade requirements of the broader transmission system are the primary cost driver. -Many projects facing high interconnection costs withdraw from the queue. -Renewables and storage projects have higher interconnection costs than natural gas power plants. -Larger generators have greater interconnection costs in absolute terms, but economies of scale can exist on a per kW basis. Interconnection costs vary by location This work was funded, in part, under the U.S. Department of Energy’s Interconnection Innovation e-Xchange (i2X

Queued Up: Characteristics of Power Plants Seeking Transmission Interconnection As of the End of 2022

Proposed large-scale electric generation and storage projects must apply for interconnection to the bulk power system via interconnection queues. While most projects that apply for interconnection are not subsequently built, data from these queues nonetheless provide a general indicator for mid-term trends in developer interest. Berkeley Lab compiled and analyzed data from all seven ISOs/RTOs in concert with 35 non-ISO utilities, representing an estimated 85% of all U.S. electricity load. We include all "active" projects in these generation interconnection queues through the end of 2022, as well as data on "operational" and "withdrawn" projects where those data are available. We find that the amount of new electric capacity in these queues is growing dramatically, with over 2,000 gigawatts (GW) of total generation and storage capacity now seeking connection to the grid (over 95% of which is for zero-carbon resources like solar, wind, and battery storage). Solar (947 GW) and battery storage (~680 GW) are – by far – the fastest growing resources in the queues; combined they accounted for over 80% of new capacity entering the queues in 2022. Substantial wind (300 GW) capacity is also seeking interconnection, 38% of which is for offshore projects (113 GW). In total, about 1,250 GW of zero-carbon generating capacity is currently seeking transmission access, as is 82 GW of natural gas capacity. Hybrids projects (co-locating multiple generation and/or storage types) comprise a large – and increasing – share of proposed projects, particularly in CAISO and the non-ISO West. 457 GW of solar hybrids (primarily solar+battery) and 24 GW of wind hybrids are currently active in the queues; over half of battery storage in the queues is paired with generation. However, much of this proposed capacity will be withdrawn from the queues and not built. Among a subset of queues for which data are available, only 21% of the projects (and 14% of capacity) seeking connection from 2000 to 2017 have been built as of the end of 2022. Additionally, interconnection wait times are on the rise: The typical duration from connection request to commercial operation increased from <2 years for projects built in 2000-2007 to nearly 4 years for those built in 2018-2022 (with a median of 5 years for projects built in 2022)

Queued Up: 2024 Edition, Characteristics of Power Plants Seeking Transmission Interconnection As of the End of 2023

Electric transmission system operators (ISOs, RTOs, or utilities) require projects seeking to connect to the grid to undergo a series of impact studies before they can be built. This process establishes what new transmission equipment or upgrades may be needed before a project can connect to the system and assigns the costs of that equipment. The lists of projects in this process are known as “interconnection queues”. The amount of new electric capacity in these queues is growing dramatically, with nearly 2,600 gigawatts (GW) of total generation and storage capacity now seeking connection to the grid (over 95% of which is for zero-carbon resources like solar, wind, and battery storage). However, most projects that apply for interconnection are ultimately withdrawn, and those that are built are taking longer on average to complete the required studies and become operational. Data from these queues nonetheless provide a general indicator for mid-term trends in developer interest. This annually updated briefing and data file compiles and analyzes interconnection queue data from all seven ISOs/RTOs alongside 44 non-ISO utilities, which collectively represent over 95% of the currently installed U.S. electric generating capacity. -The total capacity active in the queues is growing year-over-year, with over 1,570 GW of generation and an estimated 1,030 GW of storage capacity as of the end of 2023. -In total, over 1,480 GW of zero-carbon generating capacity is currently seeking transmission access. Solar (1,086 GW) accounts for the largest share of generation capacity in the queues. Substantial wind (366 GW) capacity is also seeking interconnection, 1/3 of which is for offshore projects (120 GW). -Solar and battery storage are – by far – the fastest growing resources in the queues. Combined, they account for over 80% of new capacity entering the queues in 2023. -Proposed fossil fuel generation much lower, with 79 GW of natural gas and 1.5 GW of coal currently proposed. -Hybrid projects (co-locating multiple generation and/or storage types) comprise a large – and increasing – share of proposed projects, particularly in CAISO and the non-ISO West. 571 GW of solar hybrids (primarily solar+battery) and 48 GW of wind hybrids are currently active in the queues. Over half of the battery storage capacity in the queues is paired with some form of generation (mostly solar). -However, much of this proposed capacity will not ultimately be built. Among a subset of queues for which data are available, only 19% of the projects (and 14% of capacity) seeking connection from 2000 to 2018 have been built as of the end of 2023. -Interconnection wait times are also on the rise: The typical duration from connection request to commercial operation increased from <2 years for projects built in 2000-2007 to over 4 years for those built in 2018-2023 (with a median of 5 years for projects built in 2023)

Generator Interconnection Cost Analysis in the Southwest Power Pool (SPP) Territory

Electric transmission system operators (ISOs, RTOs, or utilities) require new large generators seeking to connect to the grid to undergo a series of impact studies before they can be built. This process establishes what new transmission equipment or upgrades may be needed before a project can connect to the system and assigns the costs of that equipment. Berkeley Lab has collected interconnection cost data for 845 projects from interconnection studies for the Southwest Power Pool (SPP) Territory. The studies were performed between 2002 and 2023 and include all of the most refined cost estimates available. Project-level cost summary data are available for download on this page. We find: -Project-specific interconnection costs can differ widely. -Average interconnection costs are stable for projects that complete all interconnection studies but have escalated for those that withdraw. -Broader network upgrade costs are the primary driver of recent cost increases, especially for withdrawn projects. -Potential interconnection costs of all solar and wind requests have been greater than those of storage and natural gas projects. -Economies of scale exist for completed wind and solar projects but not for other fuel types or withdrawn projects. -Interconnection costs vary by location. Berkeley Lab publishes a series of short analytical papers of generator interconnection costs to the transmission system for MISO, PJM, SPP, ISO-NE and NYISO, which you can find at https://emp.lbl.gov/interconnection_costs