Enhancing the Interconnection Process: the NYISO’s Commitment to Improving the Integration of New Generation Projects onto the Grid

The interconnection process requires significant coordination between utilities, developers, and state and local governments. NYISO leads this process, ensuring that projects can connect to the grid without harming the system or imposing undue costs on consumers.

In January 2023, NYISO completed the final interconnection study for 27 new wind, solar, energy storage, and transmission expansion projects totaling nearly 7,500 megawatts, bringing them closer to commercial operation.

On August 1, 2024, the NYISO will commence a new, transitional “Cluster Study” expediting the interconnection study process for developers consistent with regulatory reforms by the Federal Energy Regulatory Commission (FERC) under Order 2023.

Overall, key improvements include:

Process, People, and Technology Enhancements: Over the last two years, NYISO has enhanced its processes, technology, and expertise, adding new staff to the Planning Team and customer outreach teams resulting in measurable improvements.

New Streamlined Standard Interconnection Procedures: NYISO has been actively working to further reform the interconnection process through significant reforms prompted by the Federal Energy Regulatory Commission’s Order No. 2023. The resulting reforms ― the NYISO’s new “Standard Interconnection Procedures” ― represent the most substantial enhancements to the NYISO’s interconnection process in two decades. These reforms will collectively drive substantial efficiencies and improvements in the NYISO’s interconnection process and are directly targeted at enabling the increasing number of projects seeking to interconnect in New York to do so in a reliable, efficient, transparent, and timely manner. In addition, the NYISO’s proposed reforms will assist New York State in satisfying its ambitious climate goals.

A New Interconnection Portal

The interconnection portal is a digital platform where developers and utilities submit and gain information on pending interconnection proposals and applications. The NYISO has made several improvements to the interconnection portal to enhance the user experience and streamline the process. These improvements include:

• Streamlined Inquiry Submissions: The portal now offers a more streamlined process for submitting inquiries, making it easier for users to request information and assistance.
• Enhanced Transparency: The portal provides improved transparency of project progress and status, which helps parties stay informed about developments during the study process.
• On-Demand Access: Users have on-demand access to common interconnection questions, which provides immediate answers to frequently asked questions and reduces the need for direct contact.
• Ongoing Technology Improvements: NYISO has held numerous customer focus groups with developers since 2023 to identify areas for improvement in the portal. NYISO continues to engage with customer focus groups and other stakeholders to discuss and develop additional portal functionality.

New Cluster Study Approach

The NYISO has transformed its study process into two-phase “cluster approach” to evaluate a large group of interconnection requests collectively rather than individually, saving time and workload for the NYISO, utilities and developers. The timeframes set by the new cluster study process represent a significant reduction in the NYISO’s overall interconnection process from its existing procedures.

Formerly, various studies were required, and except for the Class Year study, were performed on an individual project basis. Beginning August 1, 2024, the NYISO’s cluster study approach will incorporate these various study processes into a more efficient two-phase process. Before that time, prospective Interconnection Customers can participate in the pre-application process.

Following the issuance of FERC Order 2023, the NYISO established a 90-day window before opening the cluster study application window. This has allowed the NYISO to focus on completing pending requests and validating new applications, which is expected to improve efficiency once the Cluster Study opens on August 1, 2024.

Rolling, Optional Pre-Application Process: Effective May 2, 2024, NYISO began offering a rolling, optional pre-application process that allows developers to engage with NYISO and the Connecting Transmission Owner before formally entering the queue. The rolling preapplication phase is a significant improvement to the interconnection process, providing potential interconnection customers with an opportunity to obtain detailed information on potential points of interconnection before submitting their formal interconnection requests.

Specifically, here’s how the preapplication phase is expected to improve the process:

• Enhanced Information Access: The preapplication phase allows developers to gain greater access to information early and up front in the process, helping them make informed decisions about where to connect to the grid ― a significant consideration that can impact reliability of the electric system.
• Streamlined Submissions: Developers can submit preapplication requests on a rolling basis, providing flexibility and continuous opportunities for advancing projects.
• Efficient Coordination: The preapplication process includes a scoping meeting with the applicable Connecting Transmission Owner, leading to a more coordinated and efficient evaluation.
• Rapid Feedback: The Connecting Transmission Owner is required to complete the preapplication report within 25 business days after the scoping meeting, ensuring timely feedback to the requester.
• Transparency: The process provides transparency regarding the existing grid infrastructure, constraints, and planned upgrades, which is crucial for project planning.

Feasibility Screen: The cluster study process also includes a customer engagement window that includes a “physical infeasibility screen” to determine early on whether there are any known issues preventing a project from feasibly connected to the grid at that location, taking into consideration other projects in the cluster that are connecting nearby.

Process Changes to Speed Study Time: Other key aspects of the new procedures include the following: 

• The cluster study approach limits the number of “mid-stream” project modifications and opportunities for developers to cure deficiencies during the interconnection process to help speed timelines and avoid the possibility of one project creating delays for other projects looking to move forward within the cluster.
• The two-phase study includes several decision periods with commercial readiness deposits and withdrawal penalties, to incentivize uncertain projects to exit the queue early.
• The study process includes firm tariff-mandated study deadlines for work performed by the NYISO and Transmission Owners and tariff consequences for missed deadlines.
• The two-phase study aligns the treatment of generating facilities 20 MW or smaller with the overall process, incorporating all generation facilities into a single, standardized process.
• The new rules provide for additional pro forma forms and agreements to expedite the interconnection process, the negotiation of required agreements, and the construction of required upgrades.

These steps demonstrate NYISO’s deep commitment to improving the efficient integration of new generation projects onto the grid.