Grid interconnection rules for district energy/CHP systems

摘要

Combined heat and power and renewable resources serving district energy systems often rely on the ability to purchase backup power from the electric grid and to sell excess electricity they generate back to it. Interconnection to the grid is, therefore, an important aspect of the economic and operational viability of district energy business models. This column discusses the basic legal framework for interconnecting generating facilities and key concepts to take into account in the interconnection process. Both states and the Federal Energy Regulatory Commission have jurisdiction over the interconnection of generation facilities. In general, states have jurisdiction over interconnections to distribution facilities. Section 201(b)(1) of the Federal Power Act (FPA) 16 U.S.C. § 824 (b)(1) establishes that FERC does not have jurisdiction over facilities used in local distribution or facilities used only for the transmission of electric energy in intrastate commerce. But FERC will assert jurisdiction over (1) interconnections to transmission facilities subject to a FERC-approved open access transmission tariff (OATT) and (2) interconnections to distribution facilities subject to FERC's jurisdiction for the purpose of making wholesale sales, whereby the distribution facility is used not only for retail sales but also to transmit electric energy in interstate commerce on behalf of a wholesale purchaser.