Developer asked to pay $26 million interconnection charge for 1-MW solar landfill project

Photo voltaic undertaking developer Verogy launched data at the moment {that a} deliberate 975-kW photo voltaic undertaking on a former landfill in Windham, Connecticut, has been met with a $26 million estimated invoice for grid interconnection. Usually, transmission interconnection upgrades for tasks lower than 1 MW price roughly $50,000 to $300,000.

Native utility Eversource, which serves clients in Connecticut, Massachusetts and New Hampshire, is the entity proposing the $26 million estimate. Verogy stated the landfill photo voltaic undertaking is now prone to cancelation as a result of unexpectedly excessive price of interconnection, which undertaking builders are anticipated to pay in entirety.

The City of Windham started exploring photo voltaic alternatives in 2022, and power guide TitanGen finally selected Verogy by way of a RFP to develop a undertaking on the landfill.

“The Windham landfill photo voltaic undertaking is a good instance of how progressive partnerships can drive sustainable progress,” stated Adam Teff, Basic Supervisor, TitanGen. “We’ve labored carefully with the city and our companions to develop a undertaking that may ship vital environmental and monetary advantages to Windham residents, however the astronomical interconnection prices have created an nearly insurmountable roadblock. We’d like fast motion to reform these limitations and guarantee this undertaking and others like it could actually transfer ahead.”

A Verogy undertaking.

The undertaking is designed to supply power to a number of Windham amenities, together with the City Corridor, public security complicated, and different municipal buildings, whereas delivering vital advantages.

Connecticut’s interconnection course of requires photo voltaic builders to bear the complete price of any grid upgrades wanted to accommodate new photo voltaic tasks. These prices are sometimes considerably increased than initially estimated, creating substantial monetary limitations that may finally result in undertaking cancelations. On this case, the surprising and exorbitant $26 million interconnection prices have put the Windham landfill undertaking’s future in jeopardy.

“Our crew has a confirmed observe document of designing and setting up landfill-based photo voltaic installations identical to the undertaking proposed for Windham,” stated Will Herchel, CEO of Verogy. “Sadly, surprising interconnection prices are placing this very important undertaking and its advantages at severe threat. Connecticut has made daring commitments to wash power, but outdated insurance policies jeopardize tasks which might be very important to assembly these targets. We stay dedicated to collaborating with policymakers, utilities, and different stakeholders to deal with this problem and make the Windham landfill photo voltaic undertaking a actuality.”

Upgrading the grid to accommodate photo voltaic tasks offers systemic worth that advantages everybody — by growing reliability, enabling additional clear power growth, and lowering dependence on fossil fuels. By making photo voltaic builders solely liable for these prices, the state successfully overlooks these wider advantages, punishing those that are working to modernize and decarbonize Connecticut’s power infrastructure, Verogy says.

“For greater than a decade, Connecticut’s industrial photo voltaic builders have performed an important function in advancing the state’s clear power objectives, whereas creating 1000’s of good-paying jobs and constructing profitable companies,” stated Mike Trahan, Govt Director of the Connecticut Photo voltaic & Storage Affiliation. “Photo voltaic builders are right here to ship much-needed renewable power tasks, not shoulder the majority of probably the most vital grid improve in our lifetimes. The potential cancellation of the Windham landfill photo voltaic undertaking underscores a bigger systemic difficulty. Whereas Connecticut has set daring targets, similar to attaining 100% zero-carbon electrical energy by 2040, these objectives are in danger if prohibitively excessive interconnection prices proceed to stifle photo voltaic growth. Grid upgrades are obligatory to fulfill the state’s electrification objectives, however they may profit all ratepayers. It’s important that we reform cost-sharing mechanisms to make sure tasks like Windham’s can transfer ahead and that Connecticut stays on observe to realize its bold local weather aims.”

The Windham photo voltaic set up, which represents a novel alternative to remodel an underutilized piece of land right into a useful supply of fresh power, will stay stalled until Connecticut adopts an equitable cost-sharing mechanism that displays the advantages of grid upgrades for all stakeholders, together with utilities and ratepayers.

“The Connecticut Public Utilities Regulatory Authority (PURA) is at the moment working to develop a framework for equitable cost-sharing for interconnection of renewables by way of Docket No. 22-06-29RE01,” added Trahan. “This course of, which goals to ascertain an strategy to pretty sharing the prices of upgrading the electrical grid, not solely requires regulatory reforms, however as importantly, engagement with legislators, utilities, and clear power builders.  It’s only by way of a proactive, clear course of that Connecticut will be capable to obtain an interconnection coverage that equitably facilitates renewable power growth whereas supporting Connecticut’s local weather aims.”