Accelerated Large Load Connection Policy adopted by Southwest Power Pool
In a significant move, the Southwest Power Pool (SPP) has approved a policy for integrating and interconnecting high impact large loads (HILLs), such as data centers and manufacturing facilities, into the grid. This policy, referred to as Revision Request 696 (RR 696), is designed to accelerate load interconnections and improve the overall efficiency of the power system.
According to RR 696, a load may be considered a High Impact Large Load if the point of interconnection is less than or equal to 69 kV and the HILL peak demand is greater than or equal to 10 MW, or if the interconnection point is greater than 69 kV and the HILL peak demand is greater than or equal to 50 MW. This threshold is intended to streamline the interconnection process for smaller projects, as suggested by Andrew Webber, CEO of Digital Power Optimization.
Webber notes that most data center projects in the news today are hundreds of megawatts or even gigawatts in scale, but smaller projects could be an overlooked opportunity. He suggests that these smaller projects may find a smoother, less costly interconnection process due to falling below the large load thresholds. For instance, if a data center developer asks for a smaller amount of power, such as 35 MW or 58 MW, the process could be much faster and without such significant system upgrade costs.
The HILLs process will apply to interconnecting large loads that will be paired with new generation, either on-site or nearby, or for interconnecting large loads with current or planned generation. The aim is to enable early detection of system constraints, improve coordination across entities, and prepare operators for real-time impacts.
Elsewhere in the United States, grid operators like PJM Interconnection and New York ISO have also developed accelerated processes for data center interconnections to secure Federal Energy Regulatory Commission (FERC) approval by the end of the year. PJM Interconnection, in particular, has launched a fast-track stakeholder process to develop rules for interconnecting data centers.
The peak load in SPP is expected to increase from 56 GW to 105 GW in the next 10 years. To accommodate this growth, SPP plans to establish a 90-day study-and-approval process for interconnecting large loads. This rapid approval process is expected to support faster market entry for data center developers, enhance price signals, and allow these loads and supporting generation to have more confidence in expected costs and timelines.
Digital Power Optimization, founded by Andrew Webber, builds and manages data centers. Webber emphasizes that if a data center developer asks for 500 MW of firm power, it could cost $100 million in system upgrades and take five years or more. The new approach, therefore, offers a more attractive proposition for smaller-scale projects.
The new HILLs policy and associated tariff revisions are pending approval from the Federal Energy Regulatory Commission. Meanwhile, the Electric Reliability Council of Texas is also working to implement new rules regarding data center interconnection that require loads of 75 MW or more to participate in demand response programs. These new policies, once approved, are expected to revolutionize the interconnection process for large loads in the United States.
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