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Expect the Unexpected: The Impacts of Grid Congestion on Solar Development
As the solar PV capacity in the U.S. continues to grow and more regions reach high levels of renewable energy integration, grid congestion has become a top concern for large-scale projects. For developers or stakeholders who lack experience or fail to conduct thorough due diligence upfront, unexpected interconnection issues—such as power limitations or grid stability challenges—can lead to costly delays and project setbacks.
At Pure Power, we act as both an owner’s engineer and an independent engineering firm, helping EPCs and developers accurately assess and quantify the impacts of grid congestion on their projects. In this post, I’ll walk through how we support fast, predictable project development in areas with constrained or potentially constrained grids, using strategic planning and deep insights.
### Interconnection Technical Studies
At the beginning of any large-scale project, developers typically engage with regional grid operators or transmission system owners to initiate a site-specific study that evaluates the impact of new generation capacity. These studies identify necessary grid upgrades before interconnection can occur. However, without proper planning, especially when selecting solar sites, developers may end up acquiring land that isn’t suitable for interconnection until after the study is complete.
Interconnection studies generally focus on two main factors:
- **Power Capacity Limitations**: Existing transmission systems may already be at or near full capacity, making it expensive or even unfeasible to connect new solar assets. Developers usually bear the cost of any required upgrades, which can significantly affect a project's financial viability.
- **Grid Stability Considerations**: Older or overburdened grids may struggle with the variability of renewable sources like solar and wind. However, with proper planning and enough time in the project timeline, these issues can often be mitigated through smart equipment selection and the use of on-site energy storage solutions.
To avoid costly mistakes, early due diligence on grid capacity and site suitability is essential. Without it, project teams risk getting too far into development before understanding the true interconnection constraints.
*Courtesy: National Association of Home Builders*
### Utility-to-Utility Experience and Perspective
The level of experience utilities have with integrating large-scale renewables varies widely across the U.S., and so do their interconnection requirements. Some utilities, particularly in states like California and Florida, have well-established procedures for evaluating and approving new generation connections. They understand the potential impacts of variable resources like solar and wind on the grid and have internal teams dedicated to managing the process.
While this might seem burdensome, it actually helps developers perform the necessary due diligence early on, preventing costly surprises later. On the other hand, utilities in regions with limited renewable experience may lack clear guidelines or sophisticated processes, leading to uncertainty and potential risks for developers who proceed without proper analysis.
### Looking Toward the Future
As the energy transition accelerates, future-proofing your project portfolio becomes increasingly important. Developers are now looking ahead—mapping out 3- to 5-year plans that include solar PV and on-site energy storage. The role of power electronics alone will not be enough to address grid stability challenges from high renewable penetration. As more renewable energy comes online, the scale of projects may matter less, but the need for smart, flexible systems will only grow.
### Leverage the Benefits of Energy Storage
Not every developer aims for large-scale energy storage, but all should consider its value. While energy storage may not be a requirement for new solar projects today, including it can help secure utility approval, especially in areas with grid constraints or stability concerns. For example, while UL 1741 listed inverters can manage voltage fluctuations, only energy storage can effectively address frequency instability.
### Don’t Overlook—or Misinterpret—Scale
Currently, many developers see interconnection requirements as something that applies mainly to MW-scale projects. But as the grid evolves, similar requirements will likely extend to smaller systems, including residential solar. From a utility perspective, the virtual aggregation of distributed solar and storage assets behaves much like larger, centralized systems. This means that even small-scale projects must consider grid impacts and prepare accordingly.