The joint proposal filed by grid operators in the Midwestern U.S. outlines a plan to build $1.7 billion worth of new transmission lines to connect their networks and unlock clean energy. This collaboration between MISO and SPP aims to set a template for other regions to follow, meeting the nation’s clean energy goals. The Joint Targeted Interconnection Queue (JTIQ) process, initiated in 2020, focuses on identifying transmission projects that benefit consumers along the border of the two operators’ territories. This joint effort could facilitate the interconnection of 28 to 53 gigawatts of planned projects, reducing congestion and enabling more affordable clean energy to be integrated into the grid. Despite the benefits of these projects, interregional transmission initiatives have faced obstacles in recent years, with large-scale grid expansion slowing down. Overcoming the challenges of interregional transmission planning involves navigating negotiations between grid operators, utilities, regulators, and stakeholders to align costs and benefits. The 3rd hurdle involves a more challenging negotiation for coordinated transmission planning and cost-sharing between the two grid operators, MISO and SPP. According to Theodore Paradise, an energy, infrastructure, and resources partner at law firm Okay&L Gates, the JTIQ tariff structure by MISO and SPP signifies a significant advancement in merging their processes into a unified system.
Grid operators MISO and SPP have initiated coordinated transmission efforts to interconnect more generation in a cost-effective manner. However, despite progress, there are concerns raised by Rob Gramlich, president of consultancy Grid Strategies, that the current transmission projects proposed are insufficient compared to what is necessary for affordable and clean energy development.
The first round of projects is not addressing the issue of requiring utilities within each grid operator to share the cost of proposed grid projects. Gramlich highlighted that many generators are benefitting from the transmission but are not contributing to the costs, which is not a sustainable model for future planning efforts.
Government funding, including a $3.5 billion grid grant from the DOE in October 2023, has been essential in advancing these projects. The grants have helped reduce the financial burden on project developers. Research from the U.S. Department of Energy, MIT, and Princeton University emphasizes the importance of building more transmission lines to connect different regions of the country to improve grid efficiency and reduce blackout risks.
Long-range transmission is crucial for expanding clean energy capacity and addressing the backlog of clean energy projects waiting to be connected to the grid. Developers are seeking to connect significant gigawatts of power to MISO and SPP grids, primarily from renewable sources like wind, solar, and batteries. However, data shows that many projects in the queues have been withdrawn due to challenges in interconnection and grid upgrade costs. Transmission Grids: Enhancing Long-Range Planning and Interregional Collaboration
The Federal Energy Regulatory Commission (FERC) has taken significant steps in reforming transmission grids by issuing a regional transmission order that emphasizes the importance of long-range grid planning with benefits in mind. This includes regional transmission buildouts, such as MISO’s multibillion-dollar long-range transmission plan, which are now moving forward after years of minimal progress.
However, there are areas where Joint Interregional Transmission Queue (JITQ) is ahead of FERC in interregional transmission policy, according to Okay&L Gates’ Paradise. Alternative grid operators like MISO and PJM are starting to explore interregional planning, with a recent joint transmission analysis and coordinated modeling process launched to address their shared needs.
While there is still much work to be done before MISO and SPP’s JITQ plans come to fruition, this process could pave the way for more interregional efforts in the future. Cooperation on models, methods, configuration, and cost allocation between different regions is essential for successful grid planning and development.
Overall, the collaboration between grid operators, regulators, and stakeholders is crucial for the efficient and effective expansion of transmission grids. By focusing on long-range planning and interregional coordination, the energy industry can ensure reliability, affordability, and sustainability for years to come.
