Many renewable power generators find that they must work with a utility to determine connect to the electrical system. There is no universal cost. The cost to connect to the power grid is location dependent. Why is that?
The short answer is because the effects of the new power injection are location dependent. If it is injected into the electrical system that is a large load point with little system congestion or load factor, it is not such a big deal. But, if you try to inject a large generation amount, such as 100 MWe, it can lead to difficulties to the electrical grid system.
Electricity cannot be stored. Supply and demand must be kept in reasonable balance. Too much power added is not always usually a good thing. It needs to be sized to meet the system physical condition and electric load.
If you add to much power on a circuit that has minimal use or small current capacity, you will have to pay to upgrade the circuit. You, the new power generator are causing the problem. You need to contribute, or perhaps pay for all of the upgrade expenses. These upgrade costs can be very significant.
How can you avoid this large cost? Simply size your generation to meet the load demand and likely load growth. A properly sized power addition can sometimes be accommodated with little system upgrade.
The renewable power generator must be aware of the electrical system, its condition, its load, and it limitations. If you insist on adding load to a problem area, be prepared to pay a steep price.
Questions? Rudd Energy Management can help. We can help you negotiate an interconnection cost. We can’t always eliminate an interconnection cost, but we will try to make it a fair cost for you.
Rudd Energy Management (REM) is an energy consulting company that specializes in cost effective solutions. REM prides itself in matching experienced professionals with your problems to ensure the best solution in the shortest time possible. Contact us at (219) 476-6911.
