FERC Helps Renewables’ Transmission to Electrical Grid

Photo by Peter Craine. Some rights reserved.

The Federal Energy Regulatory Commission (FERC) recently finalized a rule helping integrate Variable Energy Resources (VERs) into the US electric system. VERs are electricity generators that produce output that is not constant and controllable over time, sources like wind and solar. The existing electrical grid was designed with steady electricity generation sources in mind, and FERC’s Order No. 764 is an attempt to efficiently incorporate renewable resources into grid operations in the US by making power transmission from generator to grid more flexible.

Though renewables with variable generation are claiming a greater portion of electricity generation, the new rules could improve transmission scheduling flexibility for both VERs and traditional sources. The grid’s current setup challenges both renewable generators who struggle to work within grid rules designed for constant sources and for grid operators trying to incorporate hard-to-predict electricity sources.

The problems for VERs in the electrical grid are many. We have written about the Bonneville Power Administration struggling to cope with simultaneous surges in wind and hydroelectric power during storms, forcing it to give away or dump excess electricity. FERC’s new rule aims to help transmission from renewables to the grid in recognition of one of these problems. Under current rules, VERs incur high charges for supplying electricity in an amount above or below that committed to for each hour-long interval. With FERC’s change to scheduling transmissions in 15-minute intervals, VERs will be better able to match their committed transmission to actual output and avoid the imbalance penalties.

You can read Davis Wright Tremaine’s full advisory to learn about FERC’s Meteorological and Outage data changes, and a post of ours with background information about the new rules from November.

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