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Americans To Miss Out on $100 Billion in Economic Benefits Unless Process for Connecting New Large-Scale Energy Projects to the Power Grid Is Fixed

Posted by Adam Winer on Nov 21, 2024

Fixing the ‘interconnection’ process would help states keep up with growing energy demands and dramatically increase job and economic opportunities

WASHINGTON, DC – The way that new large-scale energy resources plug in to the power grid is outdated and cumbersome, and a new report shows that fixing these so-called ‘interconnection’ processes could result in over $100 billion in economic benefits, and over one million years worth of work for Americans.

“Our nation’s electricity demands are growing, and these broken interconnection processes are standing in the way of Americans building the energy projects we need to thrive,” said Heather O’Neill, President and CEO at Advanced Energy United. “Fixing interconnection would unleash job-creating energy projects and deliver an economic boom in states across America. If states can more quickly build the poles and wires needed to connect new electricity resources to the power grid, they will unleash their economic potential, lower electricity bills for residents, and improve energy reliability for all.”

Successfully reforming interconnection processes nationwide is projected to produce:

  • $57 billion in economic benefit and 667,000 job-years (each job-year is one year of employment) from increased solar energy deployment
  • $42 billion in economic benefit and 376,000 job-years (each job-year is one year of employment) from increased onshore wind deployment.

The latest directive from the Federal Energy Regulatory Commission, FERC Order No. 1920, requires regional grid operators to consult with states on plans to fix interconnection processes. Earlier this year, a scorecard assessment of how grid operators are doing at interconnection handed out B, C, and D grades.

“By engaging directly with FERC, pursuing available federal funds, and calling on their regional grid operator to fulfill their responsibility to provide reliable and low-cost electricity, states can maximize economic opportunities made possible by more abundant solar and wind projects,” added O’Neill.

The report, How Interconnection Reform Can Accelerate Clean Energy Deployment, produced by Power Advisory, is available to download at AdvancedEnergyUnited.org/interconnectionreform.

Topics: Wholesale Markets, Press Releases, FERC