Fast track new energy grid connection

In particular, the physical construction of solar farms and battery energy storage systems will typically be a much quicker process than the time required to secure grid connection. This often results in significant commercial pressure for proponents.

Another common challenge is competition for grid access where there are multiple proposed projects in a similar location. Typically the first one to successfully negotiate a grid connection will be the project that gets built, which can lead to frustration and significant additional costs for some players. 

There are many factors at play here, but the key reasons for grid connection challenges can be summarised as follows:

• The need to ensure power system security in the midst of a rapidly changing industry environment 
• Shifts in location of the generating sources 
• Rapid technological change 
• Expediency driven by anticipated commercial benefits and policy drivers (e.g. carbon emission reduction targets) 
• The availability of skilled and experienced resources to address the issues and support delivery 
• The availability of robust assessment methods and tools

First, it is important that we understand the above limitations and in particular, the boundaries. The potential risks, and the avenues for assessment of their impact and effectiveness of the mitigation solutions, must be clearly understood by all parties involved including the Australian Energy Market Operator (AEMO), Transmission Network Service Provider (TNSP), Original Equipment Manufacturer (OEM), and Engineering, Procurement and Construction (EPC) suppliers. Exploring potential solutions as a well-connected, dedicated, analytical and experienced team is essential. A successful connection project will need to tick off the following checklist in its planning stage:

1. Availability of resources
2. Environmental constraints
3. Availability of the transmission capacity to access the market (i.e. consumers)
4. Revenue streams
5. Avenues for ensuring sales (e.g. availability of power purchase agreements)
6. Avenues for funding
7. Available technology options and the preferred technology 
8. Availability of suppliers and support available from suppliers
9. Access to expert advice and technical support throughout the project, and during the different stages of the project
10. Engagement of Engineering, Procurement and Construction (EPC)
11. Regulatory compliance including DA approvals and grid connection approvals
12. Project risks and risk mitigation strategies
13. Project management and delivery
    

When considered as a whole, the Grid Connection Checklist goes far beyond the checks done by AEMO, TNSPs or DNSPs (Distribution Network Service Provider) in relation to connection registration and performance compliance assessment. Further, it’s important to be familiar with recent industry action in relation to grid connection.

For example, AEMO, AEMC (Australian Energy Market Commission), and TNSPs are already working to streamline and expedite the process of grid connections. There have been many guidelines and checklists published by AEMO and TNSPs. The work is largely focused on ensuring that connection of a new plant: (a) does not adversely impact on secure operation of the power system – now and into the foreseeable future; and (b) does no harm to other connected parties.

Unfortunately, in spite of the efforts to date to streamline the grid connection requirements, there are still some inconsistencies in interpretation and application of the requirements, in particular by different TNSPs and DNSPs.

Spending time at the early stages of project investigations, considering OEMs with proven models, and/or working with OEMs/partners to build National Energy Market (NEM) compliant models will save time, money and heartbreak down the track.