Preparing Inverter-Based Resources for Regulatory Changes: Efficient and Cost-Saving Strategies for NERC Compliance Programs
The renewable generation industry is at a pivotal moment, with inverter-based resources (IBRs) becoming increasingly critical to bulk system reliability. As IBRs expand their role, regulatory frameworks, particularly those from the North American Electric Reliability Corporation (NERC), are tightening. This white paper outlines the impact of NERC's Reliability Standards on IBRs and offers actionable strategies for Generation Owners (GOs) and Operators (GOPs) to navigate compliance efficiently and cost-effectively.
Navigating NERC Standards
Compliance with NERC standards need not be intimidating. Many GOs and GOPs operate without compliance issues, indicating that proper preparation can lead to a smoother process. A significant concern is the tendency for facilities to restrict their generation capacity to avoid mandatory NERC registration. This strategy is counterproductive and detrimental to long-term business viability.
Effective compliance means integrating NERC standards into routine operations. This involves ensuring data is readily accessible for audits and training and developing templates to streamline information gathering. Engaging relevant stakeholders early is crucial for organizing necessary information and ensuring readiness.
Strategic Compliance Recommendations
Several strategic recommendations are provided for IBR operators:
- Avoid Limiting Facility Size: Facilities should not restrict their size merely to evade compliance. Embracing full IBR capabilities enhances reliability.
- Leverage Expertise: Engaging Original Equipment Manufacturers (OEMs) and Engineering, Procurement, and Construction (EPC) contractors early can ensure critical data is included in contracts, preparing the facility for compliance.
- Proactive Compliance Planning: Address compliance issues early in the facility's lifecycle to minimize challenges during audits.
- Recognize Variable Resources: Being a "variable resource" does not diminish reliability contributions. IBRs collectively form a significant portion of energy production.
- Integrate Reliability Practices: Reliability should be a natural part of everyday operations, encompassing communication and thorough record maintenance.