Everything Solar Forum

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

Short answer: This is a legal question better addressed to the entity that owns the equipment that needs upgrading for the project, and/or a lawyer with appropriate specialization.

Slightly less short answer: My understanding is that (in general) the developer is, in essence, paying the utility or other grid entity to defray the costs of the upgrade, and so the equipment is owned by the grid entity. However, I've heard anecdotally that there sometimes are more complicated arrangements for some projects, so I really do recommend that you seek advice from a lawyer with expertise in this area.

------------------------------
Emily Moog

Original Message:
Sent: 09-13-2024 03:02 PM
From: Atilla Akarsu
Subject: Interconnection Bottlenecks

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

------------------------------
Atilla Akarsu
Business Development and M&A Manager
Sabanci Renewables Inc.
------------------------------

------------------------------
Timothy Mcbride
CEOOwner
Sol-Era R & D

Original Message:
Sent: 09-16-2024 08:47 AM
From: Emily Moog
Subject: Interconnection Bottlenecks

Short answer: This is a legal question better addressed to the entity that owns the equipment that needs upgrading for the project, and/or a lawyer with appropriate specialization.

Slightly less short answer: My understanding is that (in general) the developer is, in essence, paying the utility or other grid entity to defray the costs of the upgrade, and so the equipment is owned by the grid entity. However, I've heard anecdotally that there sometimes are more complicated arrangements for some projects, so I really do recommend that you seek advice from a lawyer with expertise in this area.

------------------------------
Emily Moog

Original Message:
Sent: 09-13-2024 03:02 PM
From: Atilla Akarsu
Subject: Interconnection Bottlenecks

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

------------------------------
Atilla Akarsu
Business Development and M&A Manager
Sabanci Renewables Inc.
------------------------------

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

Typically the grid operators don't take over until the point of interconnection (POI), all assets and lines to the POI are owned by the power producer. Ultimately the cost is passed to consumers. Time to start deploying GETs!!

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

Thank you very much for your kind response. The question was related to the TSP switchyard not the project owned substation. as you know the project substation is built by developer/generator/owner. 

Typically the grid operators don't take over until the point of interconnection (POI), all assets and lines to the POI are owned by the power producer. Ultimately the cost is passed to consumers. Time to start deploying GETs!!

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?

For sure it also depends on the contract in place, but I believe TSP switchyards are owned and operated by the TSPs even if developers have to pay for an upgrade cost due to interconnection.

Thank you very much for your kind response. The question was related to the TSP switchyard not the project owned substation. as you know the project substation is built by developer/generator/owner. 

Typically the grid operators don't take over until the point of interconnection (POI), all assets and lines to the POI are owned by the power producer. Ultimately the cost is passed to consumers. Time to start deploying GETs!!

We have been in the DD process of MISO located Project. When new solar projects seek interconnection, significant grid upgrades are often required to accommodate the additional capacity. We have seen that these upgrade costs will be allocated to developers. No reimbursement mechanism on the cost will be spent to upgrade the grid. 

Even if all system upgrade and Transmission switchyard costs are covered by the developer, does ownership pass to the Transmission System Provider?