Interconnection FAQ

Interconnection links a new energy source, such as a generator or solar panel system, to the electrical grid. This process ensures the new system integrates safely and effectively with existing infrastructure. It involves technical assessments, adherence to regulatory standards, and coordination with the utility company, though specifics may vary by regional grid.

Interconnection connects various power generation sources to the electrical grid, enhancing electricity supply diversity. It helps balance supply and demand, improving grid stability and preventing outages. This process optimizes resource utilization and promotes energy market competition. Additionally, it supports the deployment of new technologies and energy storage systems.

Responsibility for interconnection falls on the entity connecting a new energy source to the grid, such as power generators or developers. This entity must meet regulatory requirements, conduct technical assessments, and coordinate with the utility or transmission operator. Utilities and grid operators facilitate and oversee the process.

The interconnection process starts when a generator submits an application, places a deposit, and secures land-use for the project. The local utility and grid operator then conducts studies, including feasibility studies, system impact studies, facilities studies, and affected system studies, to evaluate the project's impact and required upgrades. After these studies, the generator decides whether to proceed based on costs, and the utility or grid operator signs an Interconnection Agreement to finalize the connection plan.

An Interconnection Agreement is a legal contract between a generator and a utility or grid operator that outlines the terms and conditions for connecting a new energy source to the electrical grid. This agreement specifies the responsibilities of both parties, including technical requirements, construction of necessary infrastructure, and operational protocols.

A Point of Interconnection (POI) is the location where a generator connects to the electrical grid, defining the boundary between the energy producer and the utility or grid operator. It determines responsibilities and technical requirements for both parties and influences the design and cost of infrastructure upgrades. The POI is detailed in the Interconnection Agreement.

Power System Simulation for Engineers (PSS/E), developed by Siemens, is used for planning and analyzing electrical networks. Utilities, consultants, and researchers use PSS/E to model and simulate power system behavior. It determines voltage levels, power flows, and losses, evaluates transient stability, calculates fault current levels, and assesses voltage stability under varying conditions.

The Competitive Electricity Acquisition Process (CEAP) 2024 Call for Power aims to acquire 3,000 GWh/year of additional energy by fall 2028 from cost-effective projects with First Nations partnerships. It influences sustainable energy practices by promoting projects aligned with BC Hydro’s 2021 Integrated Resource Plan and incorporating stakeholder feedback.

An Integrated Resource Plan (IRP) outlines how a utility will meet future energy demand over the long term, factoring in resource availability, environmental goals, and cost-effectiveness. It evaluates energy needs, identifies resources, and balances supply options like renewable energy, conservation, and infrastructure. An IRP guides investment and operational decisions.

PSCAD is a software tool for modeling and simulating power systems, offering pre-programmed components like transformers and transmission lines. It performs time-domain and electromagnetic transient simulations for analyzing system dynamics, protection schemes, and faults. The interface supports circuit design, real-time control, and analysis for load flow, stability, and harmonics. PSCAD also integrates with MATLAB and Python.

A SIS assesses the effects of a new energy source or interconnection on the existing grid. It evaluates system reliability, stability, and infrastructure needs by analyzing load flow, voltage stability, short circuit levels, and dynamic performance under different scenarios. The study identifies required upgrades to ensure the grid can integrate the new generation or load without compromising existing operations.

Even if your site does not export power to the grid, studies are needed to ensure your system will not disrupt grid operations. The studies evaluate whether your system's equipment could cause voltage fluctuations, harmonics, or other issues. These assessments help confirm that your setup aligns with grid stability and safety standards, regardless of whether it exports power.

Interconnection costs are generally allocated by having the project owner cover direct connection costs, including equipment and upgrades specific to their project. Broader system upgrades that benefit multiple users or enhance grid reliability may be shared between the developer and utility. Evolving cost-sharing models and policies increasingly support equitable allocation, especially for smaller distributed energy projects.

Interconnection project costs vary widely, typically ranging from under $200/kW to over $400/kW. Recent increases have been significant, with average costs doubling in some regions. Costs depend on project size, technology, and status, with withdrawn projects often incurring higher expenses. These costs cover the equipment required to connect the project to the grid, such as transformers and network upgrades, which have contributed to recent cost increases.