Clean Energy Backlog Eases with Groundbreaking New Rule: Kiplinger Economic Forecasts
The Federal Energy Regulatory Commission is opening up the pathway to the electric grid.
To help you understand what is going on in the energy sector and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Federal regulators want to connect new projects to the electric grid faster. A new rule shifts the approach of the Federal Energy Regulatory Commission from “first come, first served” to “first ready, first served” when the agency decides what grid upgrades to prioritize to bring new generation and storage projects online.
The rule is FERC’s first update to interconnection requirements in two decades. Wait times to connect projects to the grid have escalated in recent years. A typical power plant or storage project built in 2022 took roughly five years to proceed from its interconnection request to commercial operation, up from three in 2015.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, interconnection queues increased by 40% last year, bringing the total backlog of projects awaiting grid connection to 2,000 gigawatts. Experts say the move is a step in the right direction, but more is needed to reduce interconnection backlogs, as well as the cost of completing upgrades.
FERC is preparing another rule intended to spur transmission development via improved planning and cost allocation, to be released in the coming months.
With odds of a bipartisan deal to reform energy permitting starting to fade, the agency’s regulatory moves will play an outsize role in the promotion of new and improved grid infrastructure. Congressional Democrats have started to petition FERC — now evenly split between two Democrats and two Republicans, with one vacancy — on possible changes to proposed regulations. Willie Phillips, acting FERC chairman, has committed to advancing rules in a bipartisan manner.
The question now is who will fill FERC’s lone vacancy, as well as when, tipping the agency’s balance of power back in favor of the Democrats. The White House has yet to name a nominee for consideration by the Senate, despite much speculation.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Earn Delta SkyMiles Worth Up to $1,800 with an AMEX Business Card
Delta SkyMiles and American Express offer 150,000 on business credit card for new cardholders.
By Ellen Kennedy Published
-
Stock Market Today: Markets Soar Amid Strong Earnings for Big Tech
Equities ended the week on an up note thanks to some of the market's biggest names.
By Dan Burrows Published
-
A Spotlight on the Pacific States: The Kiplinger Letter
The Kiplinger Letter Most Pacific states are seeing good job growth in multiple sectors including tourism, hospitality, and construction.
By David Payne Published
-
The Robots Are Coming... But Not For a While
The Kiplinger Letter There’s excitement in the tech sector over the potential of humanoid robots, but widespread adoption is likely to be years away.
By John Miley Published
-
Farmers Face Another Tough Year As Costs Continue to Climb: The Kiplinger Letter
The Kiplinger Letter Farm income is expected to decline for a second year, while costs continue to up-end farm profitability.
By Matthew Housiaux Published
-
Who Will Replace Mitch McConnell as Senate Republican Leader?
The Kiplinger Letter The runners and riders to replace Mitch McConnell as Senate Republican leader are lining up...
By Sean Lengell Published
-
Top 10 Tax Expenditures in 2024: The Tax Letter
The Tax Letter Costly tax breaks will likely come under scrutiny from lawmakers trying to reduce the national debt. We review the 10 largest individual tax expenditures.
By Joy Taylor Published
-
Odds of Republicans Retaking the Senate Gain Momentum: The Kiplinger Letter
The Kiplinger Letter With the Democrats facing an uphill task, all eyes are on the Republicans in the race to take the Senate.
By Sean Lengell Published
-
A Spotlight on the Mountain States: The Kiplinger Letter
The Kiplinger Letter Most Mountain states are seeing good job growth in multiple sectors from healthcare, energy, and semiconductor production to farming and government.
By David Payne Last updated
-
H-1B Work Visa Rules Get a Revamp
The Kiplinger Letter H-1B visas allow employers to hire high-skilled foreign workers. Regulators have finalized new rules for this visa program following last fall's proposal.
By Matthew Housiaux Published