Duke Power submitted a settlement with giant photo voltaic builders together with Cypress Creek Renewables and Strata Photo voltaic to North Carolina regulators on Thursday that goals to resolve longstanding interconnection points within the utility’s territory.
The settlement ought to resolve points for multiple hundred disputed initiatives within the Carolinas, mentioned spokesperson Randy Wheeless, clearing the best way for about 600 megawatts of photo voltaic initiatives to maneuver ahead in coming years. The proposed adjustments will want approval from regulators in each North and South Carolinas in addition to the Federal Power Regulatory Fee.
Duke initially submitted its proposal to replace interconnection procedures within the two states in Could. Lately photo voltaic has clogged Duke’s queue and the utility was unable to course of initiatives in a well timed method.
North Carolina is among the many few states which have seen vital photo voltaic growth tied to the federal Public Utility Regulatory Insurance policies Act, which incentivizes vitality manufacturing by requiring utilities to purchase from “qualifying services” developed by third events. From 2014 to the top of March 2020, third-party installers had added 2.four gigawatts of latest large-scale photo voltaic capability in Duke territory, with many installations round 5 megawatts in measurement. Utilities typically view PURPA as a problem as a result of they’re required to purchase energy, whereas it’s grow to be a vital software for builders in some states.
“The contentiousness of PURPA has been a sore spot for utilities and builders for a very long time,” mentioned Colin Smith, a senior photo voltaic analyst at Wooden Mackenzie. “They in the end have to return to some form of center floor.”
Duke had practically 5 gigawatts of photo voltaic capability in its interconnection queue in 2019, in response to a Could submitting with regulators. The utility believes roughly 1.5 gigawatts of that whole is the more than likely to maneuver ahead, in response to spokesperson Randy Wheeless. To get these initiatives tied to the grid, the utility will submit tons of of megawatts of initiatives to a “cluster research” the place their potential grid impacts might be studied concurrently somewhat than one-by-one, with hopes that can pace up the method.
Not like the cluster research Nationwide Grid undertook just lately in Massachusetts to evaluate distributed photo voltaic initiatives, the Duke settlement received help from a number of of the area’s largest builders. California additionally makes use of clusters to evaluate some interconnection requests.
“It took lots of laborious work, creativity and good religion,” mentioned Steve Levitas, a senior vp at North Carolina-headquartered Pine Gate Renewables, on a press release about reaching the deal.
Strata Photo voltaic CEO Markus Wilhelm mentioned the corporate “look[s] ahead to partnering with Duke to rework North Carolina’s electrical energy provide.” Cypress Creek Renewables, the opposite main developer within the state in response to information from Wooden Mackenzie, didn’t reply to request for touch upon the deal, however did signal the settlement filed with regulators. Duke requested commissioners to reply to the request by October 15.
The settlement comes quickly after a FERC ruling on PURPA that’s anticipated to offer utilities extra management over charges paid to qualifying services, a choice that’s prone to make the regulation much less invaluable for builders and maybe restrict its use.
In September, Duke filed its most up-to-date Built-in Useful resource Plan with regulators. It included six potential pathways to the utility’s pledged aim of net-zero carbon by mid-century, however all the eventualities embrace extra renewables. Photo voltaic additions may vary from about eight.7 gigawatts by 2035 as much as 16.four gigawatts by that yr if the utility provides no new gasoline era.
The latest IRP plus this settlement with builders are “pretty vital” for photo voltaic within the Carolinas when taken collectively, mentioned Smith, indicating builders and the utility are open to working collectively to realize renewables targets.
This story has been up to date with remark from Strata Photo voltaic.