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FERC told grid operators to give data centers a fast lane for interconnections, but it failed to address electricity supply shortages.
The Federal Energy Regulatory Commission (FERC) told grid operators on Thursday to fast track interconnection requests from data centers and other large electricity users.
Under the orders, six major grid operators have to show that data centers are “able to connect to the transmission system in a timely and orderly manner.” Data centers will be responsible for paying the costs of the interconnection. Commissioners approved the orders unanimously.
FERC also provided an opening to grid tech startups, directing grid operators to consider “alternative transmission technologies.” The commission didn’t name specific technologies, but the directive could include things like solid-state transformers or superconducting transmission lines.
Grid operators now have 30 days to submit a report detailing how much generating capacity they have to spare, if any. They also have 60 days to “defend or revise” electricity rates within their regions. FERC also directed grid operators to be more accommodating to behind-the-meter power for data centers.
While FERC’s directives gave data centers a fast lane to connect, they did not address the shortage of generating capacity.
Grid connections have been slow to materialize in part because new power plants are also having problems connecting. At the end of 2023, grid connection requests for power plants exceeded the total capacity of the existing power plant fleet, meaning the line to get on the grid was longer than the grid itself could theoretically serve.
