Turning Compliance into Opportunity: How FERC Order No. 2023 Redefines the Grid

Federal Energy Regulatory Commission (FERC) Order No. 2023, issued in July 2023, represents a transformative shift in how new electricity projects interconnect with the power grid. By replacing the historical and outdated “first come, first served” approach with a “first ready, first served” model, the order prioritizes make-ready projects and mandates cluster studies to streamline interconnection processes. It also requires transmission operators to adopt more dynamic evaluation methods and models to improve transparency and help developers identify optimal points of interconnection while avoiding highly congested areas. FERC's changes aim to reduce delays, improve efficiency, and address the growing backlog of over 2,000 GW of stalled projects. This is also expected to prioritize projects and lower costs.