FERC Order 2023 Explained: Transforming Generator Interconnection for the Future Grid A Technical Deep Dive by Keentel Engineering

Introduction

The U.S. electric grid is undergoing one of the most significant transformations in its history. The rapid integration of renewable energy, battery storage, and inverter-based resources (IBRs) has exposed fundamental limitations in legacy generator interconnection processes.

To address these challenges, the Federal Energy Regulatory Commission (FERC) issued Order No. 2023, a landmark reform aimed at improving generator interconnection procedures, reducing queue backlogs, and enabling faster deployment of new generation resources. 

At Keentel Engineering, we specialize in helping developers, utilities, and asset owners navigate these evolving regulatory frameworks through advanced engineering design, interconnection studies, and compliance services.

1. Why FERC Order 2023 Was Necessary

1.1 Interconnection Queue Crisis

• Over 10,000 active projects (~2000 GW) in queues nationwide 
• Only ~25% of projects reach commercial operation 
• Study delays exceeding 3–5 years 

This backlog has led to:

• Increased project uncertainty 
• Escalating interconnection costs 
• Delayed renewable deployment 
• Reliability risks 

FERC concluded that existing procedures are:

“insufficient to ensure reliable, efficient, transparent, and timely interconnection” 

2. Core Reforms Introduced by FERC Order 2023

2.1 Shift to “First-Ready, First-Served”

Old Model: First-Come, First-Served
New Model: First-Ready, First-Served (Cluster-Based)

Key Features:

• Projects grouped into clusters 
• Equal priority within clusters 
• Progress based on project readiness 

Result:

• Eliminates speculative queue clogging 
• Prioritizes viable projects 

2.2 Cluster Study Process

Replaces serial studies with:

• Cluster Feasibility 
• Cluster System Impact 
• Cluster Facilities Study 

Benefits:

• Reduced redundant studies 
• Better system-wide optimization 
• Lower cumulative study cost 

2.3 Increased Financial Commitments

Developers must now provide:

• Study deposits 
• Commercial readiness deposits 
• Site control evidence 

Impact:

• Filters speculative projects early 
• Improves queue quality 

2.4 Cost Allocation Reform

• Cluster study costs: Shared (pro-rata + per capita) 
• Network upgrade costs: Based on proportional impact 

Major Shift:

Moves away from “first mover pays everything”

2.5 Penalties and Accountability

• Transmission providers penalized for missed deadlines 
• Removal of “reasonable efforts” standard 
• Withdrawal penalties for developers 

Outcome:

• Stronger accountability on both sides 
  

3. Technology Integration Reforms

3.1 Co-Located and Hybrid Resources

• Multiple generators can share one POI 
• Supports solar + storage hybrid systems 

3.2 Energy Storage Modeling

• New rules allow realistic operating assumptions 
• Prevents overestimation of network upgrades 

3.3 Alternative Transmission Technologies (ATTs)

Examples:

• Dynamic line ratings 
• Advanced power flow controllers 
• Topology optimization

These reduce:

• Upgrade costs 
• Construction timelines 

3.4 Ride-Through and Modeling Requirements

For inverter-based resources:

• Mandatory dynamic models 
• Voltage ride-through capability 
• Reactive power support 

Critical for grid stability

4. Engineering Challenges Created by Order 2023

4.1 Increased Study Complexity

• Larger datasets 
• Multi-project interactions 
• EMT + RMS modeling requirements 

4.2 Data Transparency Requirements

• Public posting of interconnection data 
• Greater need for data analytics 

4.3 Affected System Coordination

• Multi-ISO and utility coordination required 
• Often major source of delays 
  

5. How Keentel Engineering Supports Clients

Keentel Engineering provides end-to-end interconnection and compliance services aligned with FERC Order 2023.

5.1 Interconnection Studies

• PSSE, PSCAD, TSAT modeling 
• Cluster study participation support 
• EMT + RMS validation 

5.2 Grid Code Compliance

• NERC compliance  
• Ride-through validation 
• Dynamic model development 

5.3 Cost Optimization

• Network upgrade mitigation strategies 
• Alternative transmission technology analysis 

5.4 Project Development Advisory

• Site selection using grid analytics 
• Queue strategy optimization 
• Risk assessment 

6. Strategic Implications for Developers

Developers must:

• Enter queues only when “ready” 
• Invest more upfront capital 
• Use advanced modeling early 

Utilities must:

• Improve study timelines 
• Enhance transparency 
• Adopt modern technologies 

7. Future Outlook

FERC Order 2023 is just the beginning.

Expected next steps:

• Integration with transmission planning reforms 
• Increased DER and microgrid inclusion 
• interconnection studies 

Conclusion

FERC Order 2023 represents a paradigm shift in generator interconnection:

• From reactive → proactive 
• From speculative → committed 
• From slow → structured 

At Keentel Engineering we help clients not just comply but gain a competitive advantage in this new regulatory environment.

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