FERC Requests Comments on Integration of Variable Energy Resources onto the Electricity Grid

On January 27, the Federal Register published a Notice of Inquiry (NOI) issued by the Federal Energy Regulatory Commission (FERC) on January 21, 2010 requesting comments from electricity industry participants regarding the integration of Variable Energy Resources (VER) onto America’s electricity grid. Publication of the NOI triggers a 60-day comment period, during which industry participants may submit proposals and recommendations sought in the NOI. The NOI is a significant step in FERC’s efforts to encourage continued generation and transmission of renewable energy, and provides industry participants an opportunity to assist in shaping FERC policy relating to renewable resource development and deployment.

A VER is a renewable energy resource that is characterized by variability in the resource’s fuel source, such as wind, solar, and certain hydroelectric resources. VERs present unique challenges that generally do not exist when integrating conventional generating resources onto the electricity grid. Although conventional generating resources may be developed throughout all areas of the United States and are fully dispatchable, VERs present location constraint and limited dispatchability challenges that were not contemplated in the development of FERC’s existing policies. Therefore, the NOI seeks comment on the extent to which barriers exist that may impede the reliable and efficient integration of VERs onto the electricity grid, and whether reforms are needed to eliminate those barriers.

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