Power Grid Interconnections: A Renewable Energy Source

Kopzhanov, an IEEE senior member, is an asset manager for Middle River Power, based in Chicago. The private equity–sponsored investment and asset management organization specializes in U.S. power generation assets.

“Every power plant has its own interconnection rights,” he says, “but, amazingly, most are not fully utilizing them.” Interconnection rights give a new power source—such as solar energy—permission to connect to a high-voltage transmission system.

“We build the new renewable energy resources on top of them,” Kopzhanov says. “It’s like colocating a new power plant.”

He recently oversaw the installation of two generator-replacement interconnection projects, one for a solar system in Minnesota and the other for a battery storage facility in California.

A fast-track approach that cuts costs

Artificial intelligence data centers are driving up demand and raising electricity bills globally. Although tech companies and investors are willing to spend trillions of U.S. dollars constructing new power facilities, it can take up to seven years just to secure the grid interconnection rights needed to start building a plant, Kopzhanov says. The lengthy process involves system planning, permit requests, and regulatory approvals. Only about 5 percent of new projects are approved each year, he says, in part because of grid reliability issues.

The interconnection technique takes about half the time, he says, bringing cleaner energy online faster. By overcoming interconnection bottlenecks, such as major transmission upgrades that delay renewable projects, the process speeds up project timelines and lowers expenses.