In a significant move to maintain grid reliability amidst rapid nonsynchronous resource integration, the Federal Energy Regulatory Commission (FERC) issued Order No. 901 on October 19, 2023. This FERC order urges the North American Electric Reliability Corporation (NERC) to establish new or adjusted Reliability Standards tackling the reliability gaps related to inverter-based resources (IBRs) (Perkins Coie) .
IBRs, which include solar, wind, fuel cell and battery storage resources, play a pivotal role in the energy grid. Their unique operational characteristics, however, induce a different set of risks to system reliability compared to conventional synchronous resources, thereby necessitating tailored rules and standards.
FERC’s issuance of Order No. 901 demonstrates both a recognition of these emerging concerns and an active step towards addressing them. Legal and industry experts are keenly observing the implications of this Order and its expected impact on advanced energy technologies, market dynamics, and future regulatory developments.
Keep in mind that these regulations could also inform how entities operating in this sector, including some of the world’s leading corporations and law firms, shape their compliance programs and evaluate related legal risks. Given the profound implications of these developments, I encourage you to stay tuned for further updates on this topic for a deeper understanding of the situation.