Mike Lazarz’s Post

FERC reformed regional transmission policy for the first time in a decade with #Order1920. But what will it change? Ted Bloch-Rubin shares his insights, focusing on the requirement to include specific ATTs in planning studies⚡ This requirement to include ATTs (alternative transmission technologies), might seem familiar as it echoes a very similar mandate in Order 2023 (which focused on reforming interconnection processes), albeit the specific technologies mandated for consideration actually differ slightly. Advanced power flow control (APFC) is included in both rules, recognizing the value of being able to divert power from overloaded facilities to underutilized ones in both general transmission planning and in supporting the connection of new generation. Article ➡️https://hubs.ly/Q02G9wYx0

Here's a summary of FERC Order No. 1920, a historic and essential step: A new rule for long-term transmission planning and cost allocation Introduction  The Federal Energy Regulatory Commission (FERC) issued a new rule, Order No. 1920, on May 20, 2024, to improve the reliability and efficiency of the nation's electric grid. The rule requires transmission providers to plan for the future transmission needs and to allocate the costs of new facilities based on the benefits they provide. The rule also gives states a greater role in the planning and selection of transmission projects. The rule responds to the comments of nearly 200 stakeholders from various sectors and interests. Key Elements of the Rule  Long-term regional transmission planning: Each transmission operator must produce a regional transmission plan of at least 20 years, using at least three scenarios that consider different factors, such as load growth, generation mix, public policy objectives, and environmental regulations. The plan must be updated at least once every five years and must identify the long-term needs and the facilities to meet them.  Benefit-cost analysis: Each transmission operator must apply seven specific benefits to evaluate whether any proposed regional transmission facilities are efficient and cost-effective. The benefits include reliability, congestion relief, fuel diversity, resource flexibility, operational efficiency, public policy goals, and resilience.  Right-sizing: Each transmission operator must identify opportunities to modify the replacement of existing transmission facilities to increase their transfer capability, known as "right-sizing". This can help optimize the use of existing transmission corridors and reduce the need for new facilities.  Cost allocation: Each transmission operator must allocate the costs of new regional transmission facilities to the customers that benefit from them, using a method that is transparent, fair, and consistent. The rule also allows for the use of different cost allocation methods for different types of facilities, such as interregional, interconnection, or network upgrades.  State involvement: The rule expands the role of states in the planning and selection of transmission facilities, by requiring transmission operators to consult with state authorities and consider their input and preferences. The rule also allows states to form agreements or compacts to jointly plan and pay for transmission facilities that cross state boundaries. https://lnkd.in/eCkJ3Mxe Federal Energy Regulatory Commission California ISO ERCOT Midcontinent Independent System Operator (MISO) PJM Interconnection NYISO ISO New England Inc. North American Electric Reliability Corporation (NERC) #transmission #electricgrid #energytransition #netzero #battery #wind #solar #transmissionplanning #gridplanning #gridintegration #der #btm #smr #mmr

With Federal Energy Regulatory Commission taking on a historic ruling with Order 1920, Electric Power Engineers is there for our clients to navigate opportunities and challenges it may bring. Working together to benefit the energy transition, EPE partners with developer and utility clients alike.       FERC Order 1920 seeks to shore up federal planning and cost allocation with FERC Order 1977 addressing back-stop siting authority for transmission infrastructure crucial to accessing clean power while ensuring reliability. These include planning new transmission projects, optimizing existing transmission lines, and revisiting how the costs of transmission facilities are allocated.    While we are diving into the full details, we are certain the policy will necessitate accurate and granular studies and evaluations by technical experts.   EPE is available to help all those who operate within the grid: utilities, transmission companies, and generation developers as they implement these new rules.   #FERC #energytransition #engineers #transmission

Big news in US #renewableenergy and #decarbonization! 🌐🔌🌿 The Federal Energy Regulatory Commission (FERC) approved a groundbreaking rule that’s set to revolutionize the U.S. electric system by a 2-1 vote. Order No. 1920 mandates grid planners and transmission owners to look 20 years ahead, considering shifts in electricity production and long-term benefits. This enables a massive build-out of renewable energy infrastructure, defend against extreme weather, and pave the way for decarbonization. The dissenting vote argued it “goes far beyond FERC’s legal authority and fails to perform our consumer protection function and the Federal Power Act.” Notably, ERCOT (Texas’s electricity grid) is not affected. https://lnkd.in/eR-g42n2

ICYMI: Federal Energy Regulatory Commission Order 1920: "FERC acted today to ensure the transmission grid can meet the nation’s growing demand for reliable electricity with a new rule that outlines how to plan and pay for facilities that regions of the country will need to keep the lights on and power the American economy through the 21st Century. Today’s rule, Order No. 1920, marks the first time in more than a decade that FERC has addressed regional transmission policy – and the first time the Commission has ever squarely addressed the need for long-term transmission planning." https://lnkd.in/gZEvE6dJ

Federal Energy Regulatory Commission acted today to ensure the transmission grid can meet the nation’s growing demand for reliable electricity with a new rule that outlines how to plan and pay for facilities that regions of the country will need to keep the lights on and power the American economy through the 21st Century. Today’s rule, Order No. 1920, marks the first time in more than a decade that FERC has addressed regional transmission policy – and the first time the Commission has ever squarely addressed the need for long-term transmission planning. “Our country is facing an unprecedented surge in demand for affordable electricity while confronting extreme weather threats to the reliability of our grid and trying to stay one step ahead of the massive technological changes we are seeing in our society,” FERC Chairman Willie Phillips said. “Our nation needs a new foundation to get badly needed new transmission planned, paid for and built. With this new rule, that starts today.” FERC today also unanimously approved a rule, Order No. 1977, outlining how it plans to implement its limited authority over siting electricity transmission lines, as amended by Congress in 2021. https://lnkd.in/e5MAYWUY

Upgrading the transmission system in the US is desperately needed as the electricity load grows with more renewables in the mix. The recent FERC ruling, requiring grid operators to plan for the long term, is a crucial step in the right direction. While the implementation details may take time to clarify, it opens up a vast space for private sectors to innovate on hardware, software, and financing solutions. The intersection of power, finance, and renewable will see great opportunities moving forward! Here are some resources to learn more: https://lnkd.in/euPq7wng https://lnkd.in/erfPs4sa https://lnkd.in/ey7e6YzV https://lnkd.in/e9mUyR9n

POWER's June issue will feature a Special Report on power grid infrastructure, with industry experts talking about the technology needed to upgrade and harden the electricity transmission and distribution network. Look for that next month, and in the meantime, get the information on what the Federal Energy Regulatory Commission is doing when it comes to regional transmission planning. https://lnkd.in/eTPzAydp

For utilities and grid operators, transmission planning can no longer be conducted based on a short-term, 3-to-5-year outlook for utilities. Instead, it’s now necessary for utilities to factor in long-term changes across the energy industry and start planning for the next 20 years, and with this new rule, the Federal Energy Regulatory Commission is hoping to help push the industry in that direction. We're excited to collaborate with our utilities and grid customers on strategizing for a cleaner, more sustainable energy future once the final rule is issued – it’s definitely a policy to watch. #CleanEnergy #FERC #RenewableFuture #RenewableEnergy

FERC is doing work! Order No 1920 is the biggest rule announced in the last decade and it codifies requirements around many things that seem like "the way things should be done"... but weren't. For example, the rule requires that transmission operators consider grid enhancing technologies (GETs) and advanced reconductors. The rule also specifies new cost-allocation methods to ensure that those who benefit from these projects are paying, and those who do not benefit do not need to pay. We have the technology to build a 100% renewable energy system, now we have more federal regulatory rules to support rapid transmission grid development. https://lnkd.in/d-XDk_3Z