Regional Grid Operators Need to Be Ready to Comply with the Complex FERC Order 2222

The Federal Energy Regulatory Commission Order 2222, issued in 2020, was expected to be key for developing a low-carbon electricity system, as it aimed to help clean energy technologies join the grid. However, climate advocates are concerned the policy could impose additional barriers for certain clean energy resources.

In an interview with Politico, Hector Artze, partner at Guidehouse, and Pradipta Tripathy, associate director, discuss the effect the policy could have on small-scale clean energy resources. As environmental groups express concerns regarding some regional grid operators' proposed implementation timelines, further issues—such as additional checks and balances for distributed energy resources (DER) implementation—can also add delays. However, Artze highlighted that the fully implemented FERC Order 2222 should provide a strong financial incentive for distributed energy resources to take off in the relevant regions.