A month after Texas’ grid operator proposed a “batch zero” group for data centers and large load projects, the process remains four months from execution.
The Electric Reliability Council of Texas (ERCOT) plans to present a revised evaluation process to its board in June, determining which projects will be part of the initial interconnection queue.
Project developers are urging a timeline. Jeff Billo, ERCOT’s vice president of interconnection and grid analysis, mentioned that if the new criteria are set by June, studies for the group could begin by late summer.
“Targeting is probably not a strong enough word—I would say that’s somewhere between a target and a mandate,” Billo commented on the new criteria during a board meeting.
ERCOT’s previous method, designed for 40-50 projects, is overwhelmed by 225 new requests from last year, according to a December report.
In September 2024, ERCOT had 56 gigawatts of interconnection requests. A year later, it surged to 205 gigawatts—more than twice ERCOT’s peak demand of 85.5 gigawatts in August 2023. The surge is largely due to data centers powering tech giants’ AI projects.
ERCOT’s new study system aims to inform project developers about the demand that can be reliably served over six years and necessary transmission upgrades, stated ERCOT CEO Pablo Vegas.
The data center industry supports the “batch process” but is concerned about its implementation, including which projects will be prioritized.
Cameron Poursoltan from the Data Center Coalition noted some projects have been awaiting interconnection for years, meeting all criteria. The coalition seeks assurance that these projects won’t be disadvantaged.
ERCOT has not specified how it will batch the initial group from the current 232 GW queue, leading to industry questions about project prioritization and capacity availability.
Billo indicated that eligibility guidelines for batch zero will be discussed during upcoming workshops, with revisions expected in June.
By September, ERCOT aims to finalize guidelines for ongoing batches for board approval. “We heard the message loud and clear: We need to keep the pace going on this work,” Billo said, emphasizing urgency for economic growth.
The existing planning system was adequate when Texas added eight to 15 large load projects quarterly, Vegas said. Now, it handles 80 to 100 interconnections. “It clearly broke the processes we had,” he commented.
Currently, developers face a “doom-loop” of reevaluation as nearby projects seek connection. The batch system aims to streamline the process for the grid operator, transmission providers, and developers, providing a clear timetable for grid capacity.
If developers agree to the timeline and invest financially, they secure connection rights, Vegas added.
Original Story at insideclimatenews.org