CAISO Stakeholder Workshop: 2023 Interconnection Process Enhancements - Track 3 Draft Proposal

In mid-January, EPE attended a workshop where CAISO presented its Final Track 3 Proposal, part of the 2023 Interconnection Process Enhancements implementing FERC Order 2023 requirements. This session allowed stakeholders to engage directly with CAISO by asking questions, providing recommendations, and requesting clarifications on the presented materials. Below are the key proposals and their implications.

Intra-cluster Prioritization

Allocation process to allow generators to interconnect without triggering long lead-time upgrades. 

• Intra-cluster Prioritization and Interim Deliverability: Discussed prioritization within clusters and interim deliverability allocations.

• Purpose: To allow generators to interconnect without triggering long lead-time upgrades.
  

• Process: Projects within a cluster are prioritized based on specific criteria, ensuring that those with fewer impacts on the grid can proceed more quickly.

• Benefits: This helps manage the interconnection queue more efficiently based on specific criteria, enabling those with minimal grid impact to advance more swiftly; reduces delays for projects that are ready to proceed.

• Impact on Renewable Energy Projects: (1) Faster Interconnection –Renewable energy projects that have minimal impact on the grid can proceed more quickly, reducing delays. (2) Efficient Queue Management —Helps manage the interconnection queue, ensuring that ready-to-go projects are not held up by those requiring extensive upgrades.

TPD Allocation Modifications

New priority groups and scoring criteria for TPD allocations starting in 2027.

• New Priority Groups: Starting in 2027, TPD allocations will be based on new priority groups, which categorize projects based on their readiness and impact.

• Scoring Criteria: Projects will be scored using updated criteria considering project maturity, grid impact, and contribution to renewable energy goals.

• Objective: To ensure a fair and transparent allocation of transmission planning deliverability, supporting the integration of renewable energy sources.

• Fair Allocation: The new priority groups and scoring criteria ensure a fair and transparent allocation of transmission planning deliverability. Projects will be evaluated using revised criteria considering project maturity, grid impact, and contributions to renewable energy objectives.

• Support for Renewables: Projects contributing to renewable energy goals are given higher priority, encouraging the development of clean energy sources.

• Enhanced Readiness: Projects that are more mature and ready for implementation are prioritized, leading to a more streamlined integration of renewable energy into the grid.

Financial Security Adjustments

Extended deadlines for financial security postings for certain projects.

• Extended Deadlines: The second Interconnection Financial Security posting deadline for Cluster 14 parked projects is extended to May 29, 2026.

• Reason for Adjustment: This change accommodates the revised 2025-2027 TPD allocation cycle schedules.

• Consistency: The new deadline aligns with past schedules, maintaining a 60-day window after TPD allocation results are published.

• Impact on Renewable Energy Projects: Financial Flexibility: Extended deadlines for financial security postings provide renewable energy projects with more time to secure necessary funding and meet financial obligations.

Long Lead-Time Resources

Deferred TPD attempts and reserved transmission capacity for qualifying resources.

• Deferred TPD Attempts: Long lead-time interconnection customers can defer their first attempt to seek Transmission Planning Deliverability (TPD) until closer to meeting critical milestones.

• Reserved Capacity: Transmission capacity will be reserved for qualifying long lead-time resources, consistent with the resource portfolios specified by local regulatory authorities.

• Trigger Mechanisms: Reserved TPD will be released if the generation or transmission does not materialize, based on specific triggers like transmission cancellation or procurement halts.

• Streamlined Integration: Deferred TPD attempts and reserved capacity for long lead-time resources support the efficient integration of renewable energy projects into the grid.

• Enhanced Planning: Clear guidelines and reserved capacity for long lead-time resources ensure renewable energy projects can align their development timelines with grid capacity availability.

These changes are designed to support the growth and integration of renewable energy projects by making the interconnection process more efficient and equitable. They will also provide greater flexibility and support for renewable energy projects, facilitating their successful integration into the grid. The final proposal and stakeholder call will happen later this month.