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Expect the Unexpected: The Impacts of Grid Congestion on Solar Development
As the capacity of solar PV systems in the US continues to grow, and more regions reach high levels of renewable energy penetration, grid congestion is becoming a critical concern for large-scale projects. For project stakeholders who lack experience or fail to conduct thorough due diligence early on, unexpected interconnection challenges—such as power limitations or grid stability issues—can lead to costly delays and setbacks. These problems often arise when developers proceed without fully understanding the grid's capacity and constraints.
At Pure Power, we serve as both an owner’s engineer and an independent engineer, providing our EPC and developer clients with the expertise needed to identify, analyze, and quantify potential impacts from grid congestion. In this post, I’ll explain how we help streamline project development, especially in areas where grid constraints are a factor, through proper planning and strategic insights.
### Interconnection Technical Studies
At the beginning of any large-scale project, developers typically initiate a site-specific study with the regional grid operator to assess the impact of new generation capacity. This process helps identify necessary grid upgrades before interconnection can occur. However, if a site is chosen too early, before these studies are completed, it can lead to costly missteps. Interconnection studies generally focus on:
- **Power capacity limitations**: Existing transmission systems may be at or near full capacity, making it expensive or even unfeasible to connect new solar assets. Developers often bear the cost of required upgrades, which can significantly affect project economics.
- **Grid stability considerations**: Older or overburdened grids may struggle with the variability of renewable sources like solar and wind. With proper planning and enough time, these issues can be mitigated using advanced equipment and on-site energy storage solutions.
To avoid unnecessary costs and delays, it's crucial for project teams to conduct due diligence early, assessing grid capacity and interconnection requirements before moving forward with site selection or procurement.
*Courtesy: National Association of Home Builders*
### Utility-to-Utility Experience and Perspective
The level of experience that utilities have with integrating large-scale renewables varies widely across the U.S., and so do their interconnection requirements. For example, Germany was one of the first countries to adopt large-scale renewables, facing grid instability issues in 2011 due to the lack of smart inverters and clear interconnection guidelines. Today, similar challenges are being addressed through better technology and planning.
In the U.S., states like California and Florida, along with regions such as New England, have well-established interconnection processes. These utilities understand the impact of variable generation and have internal resources to review applications and studies. While the process can seem complex, it ultimately ensures that developers conduct the necessary due diligence early, avoiding costly surprises later.
However, in regions with limited experience in handling bulk renewables, interconnection requirements may be less defined or even absent. Just because a utility doesn’t ask for a study doesn’t mean you shouldn’t do one. Without proper guidance, developers may invest heavily in equipment and procurement before identifying grid constraints.
### Looking Toward the Future
As the energy transition accelerates, future-proofing your project portfolio will become increasingly important. Developers are now considering not just solar PV but also on-site energy storage as part of their long-term strategy. While power electronics alone can’t solve all grid stability issues, energy storage plays a key role in managing frequency fluctuations, which is critical for high-penetration renewable systems.
Even if energy storage isn't currently a requirement for new projects, including it can improve the chances of getting grid approval, especially in constrained areas. Additionally, as renewable penetration increases, the scale of projects may become less relevant. Utilities are starting to treat small, distributed systems as virtual aggregations, effectively treating them like larger ones.
For developers, the message is clear: plan ahead, consider energy storage, and stay informed about grid trends. The future of solar and renewable integration depends on proactive thinking and strategic planning.