- Regulatory Setback: The Federal Energy Regulatory Commission (FERC) has rejected NV Energy’s plan to allow developers to exit its interconnection queue without financial penalties.
- Massive Queue Growth: The decision affects a rapidly expanding queue that has swelled by 30% in the last three months, now totaling 23.1 gigawatts (GW) of proposed projects.
- Geothermal and Solar Surge: The queue is dominated by solar-plus-storage projects (9.3 GW) and has seen a dramatic tenfold increase in geothermal projects, which now stand at 3.3 GW.
- Industry Support Overruled: FERC’s denial came despite support from major clean energy groups who saw the proposal as a way to filter out non-viable projects and ease the logjam.
FERC Blocks NV Energy’s Plan to Clear Swelling Project Queue
The Federal Energy Regulatory Commission (FERC) on Monday dealt a significant blow to NV Energy’s efforts to manage its increasingly congested interconnection queue, rejecting a proposal that would have allowed project developers a penalty-free exit. The decision leaves the utility and energy developers in a state of uncertainty as the backlog of projects, primarily solar and geothermal, continues to grow at an unprecedented rate.
The Proposal to Unclog the System
NV Energy had requested a waiver to implement a one-time, 60-day window for any interconnection customer that had paid a commercial deposit. During this period, developers could have withdrawn their project from the queue or terminated their generator agreement without penalty and received an immediate refund of their deposit.
This plan garnered support from key industry players, including the Solar Energy Industries Association and the Interwest Energy Alliance. Proponents argued the waiver would be a pragmatic solution to streamline the queue by encouraging developers of unviable projects to withdraw, thereby freeing up capacity and study resources for more promising proposals.
Why Regulators Said No
Despite the industry backing, FERC denied the request, stating it was not “limited in scope.” The commission argued that the proposed waiver was too broad and would effectively create a new “safe harbor process” that isn’t part of the existing tariff rules.
“The requested waiver would establish a new safe harbor process not included in the tariff that is applicable to all interconnection customers that have paid a commercial deposit,” FERC stated. The agency concluded that because the waiver wasn’t restricted to a “discrete number of interconnection customers with a demonstrated need for relief,” it could not be approved.
A Queue Under Immense Pressure
The rejection comes at a critical time for NV Energy, which is facing a massive influx of clean energy project proposals. As of October 13, the utility’s queue contained 69 projects totaling approximately 23.1 GW. This represents a staggering 30% increase from the 17.6 GW recorded at the end of July.
Breakdown of a Growing Backlog
The composition of the queue highlights the clean energy boom in the region:
- Solar and Storage: Hybrid solar and battery storage projects are the largest component, accounting for 9.3 GW, or 40% of the total queue.
- Geothermal Boom: Geothermal energy projects have seen a massive surge, jumping from just 350 MW in July to 3.3 GW, now making up 15% of the queue.
With FERC’s denial, NV Energy is now tasked with managing this ballooning backlog without a key tool it sought to maintain efficiency. The decision raises concerns about potential delays for critical clean energy infrastructure and leaves developers weighing their options while stuck in a growing line.