What Is Surplus Interconnection? And Why It Could Unlock the U.S. Power Grid
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What Is Surplus Interconnection? And Why It Could Unlock the U.S. Power Grid

The United States’ power grid is facing a new era of electricity demand growth as data centers come online and factories, electric vehicles, and buildings switch to affordable electric technologies.

But we’re still stuck in yesterday’s approach to connecting new electricity generation resources to our power grid. On average, a power plant that wants to connect to the grid must wait five years or more before it can supply power. With aging coal plants retiring while data centers and electric vehicles seek new power supplies, this wait time is simply too slow. Using existing connection points can bring projects online in two or three years compared to an average of five for the standard process.

Meanwhile, electricity prices have soared 13 percent since January 2025, and a big portion of that increase is the price of building new poles and wires even though electricity generation costs are falling.

Fortunately, an innovative policy shortcut can speed up the time to connect to the grid and help reduce the amount of new infrastructure we need to build – surplus interconnection. The potential is massive – Researchers from UC Berkley estimate that over 1,000 gigawatts of new wind and solar and 260 gigawatts of energy storage[1] could be added to the grid.

America’s electricity system currently has about 1,300 gigawatts (GW) of power capacity installed across thousands of power plants, but we have over 2,200 additional GW just waiting in line to connect.[2] While likely not all of these projects are viable, it demonstrates the massive barrier that interconnection has come to represent. These projects are typically delayed by studies that determine exactly how they need to be connected, as well as by the process of building that infrastructure.

The key to surplus interconnection is that many existing fossil fuel power plants aren’t running or using the grid infrastructure allocated to them all of the time. Because these power plants and transmission lines aren’t being used 100 percent of the time (generators on average are only in use 50% of the time),[3] this “surplus” space on the power grid means we can add more new electricity generation right where these existing power plants are by sharing a grid connecting with existing infrastructure, plugging into the grid without having to build any new lines or towers.

Think about it like this: Railroad tracks are only used 10-30 percent of the time, and hit their highest use during rush hour. But the tracks are available 100 percent of the time, just waiting around ready to be used. What if trains used this time to transport other goods, getting things where they need to go without needing to build any additional tracks?

The best candidates for sharing a grid connection using surplus interconnection include peaking gas power plants that only turn on during the times of highest electricity demand, wind plants that mostly generate at night, or any solar plant that can combine with battery storage to soak up cheap power during the day and discharge at night during the evening air conditioning peak. This helps cut costs for families and businesses because it uses  existing poles and wires for a larger percentage of the time, which means that the fixed costs of the grid can stay lower.

These existing connections to the grid have already been studied and approved by grid operators, and in most cases, making better use of these connections should avoid costly grid upgrades that can drive up the price of new power projects.  For example, in 2017 a solar project in Kansas that was trying to connect to the grid via the typical interconnection process that involved building new power lines, facing costs of over $300/kW for these upgrades and an expected completion date in 2025. Four years later, a similar solar project in the neighboring county requested to connect via surplus interconnection in 2021 – interconnection costs this time were less than $1/kW, and completion date was only two years later in 2023.[4]

Surplus interconnection goes into action in Utah

In Utah, an 80 megawatt (MW) solar facility in Emery County[5] added battery storage, enabling the power plant to store electricity during the day and export it to the grid during peak evening hours. Typically, this would require new interconnection studies and upgrades to allow the solar and batteries to inject power into the grid simultaneously, requiring wires double the size.

However, because the batteries would be operated in the evening when the solar project was not generating electricity, the two projects could simply use the existing 80 MW connection and output power to the grid at different times, turning the facility into a reliability powerhouse without paying or waiting for any upgrades to the grid.

Now, PacifiCorp is planning for a similar arrangement at four more sites across the state,[6] aiming to add an additional 320 MW of storage with no grid upgrades. The agreement is simple – the operator can use the solar and batteries as they see fit, as long as the overall grid output does not exceed the 80 MW maximum.  

Surplus interconnection is gaining traction across the country. In 2026, Indiana and Virgina passed legislation to promote surplus interconnection.[7] In Virginia, two utilities will now be required to evaluate how much surplus interconnection capacity is available at existing and planned renewable sites. In Indiana, utilities are now required to analyze and include surplus interconnection’s potential to meet grid needs as a part of utility planning processes.

Generator replacement goes a step beyond surplus in Minnesota

Surplus interconnection can add new generation at existing power plants, but the same concept can also be applied to dozens of large old power plants across America that are planning to retire in the next five years, leaving their connections to the grid open to replacement resources.

In Minnesota, one local utility is using the interconnection capacity left behind by the retirement of the Sherco coal plant to add over 900 MW of solar alongside 600 MW of energy storage[8], and is connecting to the grid using the poles and wires left behind by the of the retiring 2,200 MW coal plant. The new Sherco Energy Hub will be able to tap federal tax credits before they are repealed by the One Big Beautiful Bill Act because the speed of the generator replacement process will allow the utility, Xcel Energy, to break ground by the 2026 July deadline.

The surplus opportunity could meet the needs of today

With surplus interconnection and generator replacement available as proven strategies to bring needed power online quickly, America can accelerate the way projects connect to the grid––reducing costs for developers, and ultimately all electricity customers. could be added to the grid. Now is the time to take advantage.

[1] Umed Paliwal, Emilia Chjkiewicz, Nikit Abhyankar, Amol Phadke, “Existing plants sharing grid access with renewables can lower costs and double U.S. generation capacity,” GridLab, UC Berkeley, (2025): https://gridlab.org/portfolio-item/surplus-interconnection-technical-report/

[2] Joseph Rand et al, “Queued Up: 2025 Edition,” Lawrence Berkeley National Laboratory, (2025): https://emp.lbl.gov/sites/default/files/2025-12/Queued%20Up%202025%20Edition%20-%2012.15.2025.pdf

[3] Ryan Hledik, Long Lam, Kate Peters, “The Untapped Grid: How Better Utilization of the Power System Can Improve Energy Affordability,” The Brattle Group, (2026): https://www.brattle.com/wp-content/uploads/2026/03/The-Untapped-Grid-Mar-2026.pdf

[4] Chelsea Mattioda, Sarah Shenstone-Harris, Sophie Schadler, Jack Smith, “No-Regrets Solutions for Accelerating Grid Interconnection,” Synapse Energy Economics, Inc., (2024): https://www.synapse-energy.com/sites/default/files/No-Regrets%20Solutions%20for%20Accelerating%20Grid%20Interconnection_Final%20Synapse%20Report%208.19.24%2023-132.pdf.

[5]Robert Eckenrod, “RE: PacifiCorp, Docket No. ER25-____-000 Surplus Large Generator Interconnection Agreement and Energy Displacement Agreement”, PacifiCorp, (2025): https://pscdocs.utah.gov/misc/25docs/2599901/340389RMPSrplsLrgGnrtrIntrcnctnAgrmntEnrgyDsplcmntAgrmntFERCER2526296-26-2025.pdf?

[6] “Utah 2025 Integrated Resource Plan”, PacifiCorp, (2025): https://pscdocs.utah.gov/electric/25docs/2503522/339034RMP2025IRPVlmI3-31-2025

[7] Ethan Howland, “Virginia, Indiana lawmakers pass surplus interconnection bills,” Utility Dive, (2026): https://www.utilitydive.com/news/virginia-indiana-surplus-interconnection-pjm-miso-spp/813442/

[8] Brian Martucci, “Xcel doubles down on plan to swap coal for clean power in Minnesota,” Canary Media, (2025): https://www.canarymedia.com/articles/energy-storage/xcel-minnesota-increase-battery-solar-sherco

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Surplus interconnection is gaining traction in the United States for its ability to add new generation at existing power plants.
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What Is An Energy Park?
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An energy park is an affordable, quick solution to meet rising energy demand, particularly a clean energy park. This type of energy park pairs various clean energy generation sources like solar or wind, paired with energy storage solutions like batteries, all developed alongside electricity consumers like factories or data centers.

Bundling diverse energy generation with storage to in proximity to large, flexible loads ensures cheaper and more reliable access to clean electricity output, while avoiding grid connection or development barriers to help meet rising power demands.

Energy parks are connected to the grid at one location, or in the same general area, so they can power themselves during normal operations or provide power to the larger grid during high demand, creating a grid asset instead of a grid liability. 

Energy parks can also replace inflexible, large, single-source power plants with a “speed-to-power” solution that solves problems for grid operators by quickly meeting large new sources of demand without cutting into power supply for the host grid or requiring big new upgrades to the grid.

Are energy parks clean?

Energy parks can theoretically be powered by any generation source, including fossil fuels, but doing so exposes customers to higher price risks than clean energy. While natural gas prices have fallen in recent years due to America’s fracking boom, it is a commodity traded on global markets subject to price spikes whenever wars or extreme weather reduce supplies – for instance the Iran war raised gas costs almost overnight, which threatens America’s industrial sector. Coal has been proposed as another way to meet rising demand, but the cost of generating power at existing coal plants in the United States has risen faster than inflation due to a combination of aging power fleets and increased fossil fuel prices – making them incredibly uncompetitive.[1] Aging plants means coal is also increasingly unreliable.[2]

Renewable energy makes clean energy parks modular, meaning that they are well-suited to come online quickly. A combination of renewable generation sources, such as wind, solar, geothermal, and hydropower, plus battery storage or industrial technologies like thermal batteries, offers consumers variety and reliability. In addition to cutting air pollution, renewable energy is the quickest and cheapest way to expand generation capacity.[3] In 2025, batteries and renewables composed more than 90 percent[4] of all new generation capacity added to the U.S. grid.

Pairing clean energy and battery storage can reduce greenhouse gas emissions and increase productivity. Google, for example, recently announced plans to invest $20 billion[5] in clean energy parks over the next five years, and just announced it would power a new data center[6] with a massive battery storage facility.

Energy parks create good economic benefits

Cutting costs is a big part of what makes behind-the-meter or on-site energy generation so alluring. By co-locating large energy customers alongside clean energy generation, consumer can reduce infrastructure expenses, tap all available tax credits, and optimize their generation and storage capacity.

Sourcing electricity from renewable projects is the cheapest and quickest way to generate power. The cost of wind, solar, and battery storage has declined significantly in the past decade. The International Renewable Energy Agency recently reported “renewables maintained their price advantage over fossil fuels, with cost declines driven by technological innovation, competitive supply chains, and economies of scale.”[7] 

Building behind-the-meter power in proximity to large energy demand is important because generating power closer to the consumer helps avoid transmission and distribution costs, which vary depending on local utilities. It also can avoid grid interconnection queues, which can take years to resolve, and reduces the need to build new transmission lines. And it unlocks the potential for energy parks to store excess energy when production exceeds demand or sell it to the larger grid when demand is highest.

Modular design is one of the best aspects of energy parks

Modularity is a defining feature of a clean energy park – and one of its greatest strengths. New capacity to generate, store and use electricity can be added over time as new demand comes online, meaning the entire energy park project doesn’t need to occur all at once.

This gives stakeholders the opportunity to thoughtfully develop their facilities and raise the necessary capital, removing some risks associated with bringing new projects online. It also acts as a built-in safety net that can shield developers from changing market factors.

Modular design is flexible, meaning each energy park can be customized to meet the unique needs of the industries and consumers it serves. As projects evolve, they can grow with technology innovations or shifting economic realities, for example adding thermal batteries[8] if the energy park has high-heat manufacturing needs.

Transitioning Colorado’s Comanche 3 coal plant into a clean energy park

Pueblo, Colorado’s Comanche 3 coal plant, is an ideal example of how a clean energy park can cut costs and create new economic opportunities. Comanche 3 is set to retire in 2031, and a just transition process involving state officials, the utility Xcel Energy, and local community leaders is considering replacing it with a clean energy park.[9] Doing so could diversify the region’s economy while increasing grid resiliency and cutting toxic air pollution.

Flexible and modular design allows for bespoke development. Local Pueblo industries such as steel and cement manufacturing require high heat. Transitioning the coal plant into an energy park creates opportunities to deploy industrial thermal batteries which store electricity as heat which can be used directly in industrial processes that requires hot air or steam. 

Modeling with a sample portfolio of resources shows an energy park powered by wind and solar generation paired with onsite batteries could begin construction years before other potential generation sources, would generate property tax payments that peak at $40 million annually, and create hundreds of permanent jobs in engineering, business operations, and industrial plant operation. 

A cleaner, cheaper, more reliable future with energy parks

Demand for electricity, as well as the cost of generating it, has risen drastically as data centers come online, and the grid begins to age.

Clean energy parks make industrial facilities considerate neighbors, since they serve the primary function of plugging an energy hole without overburdening the communities that house these facilities. Meanwhile, adding energy sources keep the air and water clean for nearby communities, and electrifying industry with clean energy increases efficiency and cut costs.

They also accelerate project development and economy growth, without saddling the community with higher utility bills. Consumers, utilities and companies are always looking for the newest, cheapest and more secure technological solutions–as far as reliable, secure and cheap energy goes, energy parks are a safe future-facing solution. 

[1] Michelle Solomon, “Coal Power 28 Percent More Expensive In 2024 Than In 2021,” Energy Innovation, (2025): https://energyinnovation.org/report/coal-power-28-percent-more-expensive-in-2024-than-in-2021/

[2] Matthew Zeitlin, “Trump Wants To Prop Up Coal Plants. They Keep Breaking Down.,” Heatmap, (2025): https://heatmap.news/energy/coal-reliability

[3] Energy Innovation, “What Is Clean Energy,” Energy Innovation, (2024): https://energyinnovation.org/expert-voice/what-is-clean-energy/

[4] Energy Innovation, “What Is Clean Energy,” Energy Innovation, (2024): https://energyinnovation.org/expert-voice/what-is-clean-energy/

[5] Maeve Allsup, “Google’s Intersect Deal Is Much More Than A Green Power Play,” Latitude Media, (2026): https://www.latitudemedia.com/news/googles-intersect-deal-is-much-more-than-a-green-power-play/

[6] Lisa Martine Jenkins, “With Form Energy Deal, Google’s Clean Transition Tariff Is Growing Up,” Latitude Media, (2026):https://www.latitudemedia.com/news/with-form-energy-deal-googles-clean-transition-tariff-is-growing-up/

[7] International Renewable Energy Agency, “Renewable Power Generation Costs In 2024,” International Renewable Energy Agency, (2024): https://www.irena.org/Publications/2025/Jun/Renewable-Power-Generation-Costs-in-2024

[8] Jeffrey Rissman and Eric Gimon, “Thermal Batteries: Decarbonizing U.S. Industry While Supporting A High-Renewables Grid,”  Energy Innovation, (2023): https://energyinnovation.org/report/thermal-batteries-decarbonizing-u-s-industry-while-supporting-a-high-renewables-grid/

[9] Michelle Solomon and Eric Gimon, “Flexible, Clean Industry And Sustainable Energy Power Strong Economies: A Case Study In Pueblo, Colorado,” Energy Innovation, (2025): https://energyinnovation.org/report/flexible-clean-industry-and-sustainable-energy-power-strong-economies-a-case-study-in-pueblo-colorado/

The post What Is An Energy Park? appeared first on Energy Innovation.

Energy parks can pair with clean energy and battery storage to reduce greenhouse gas emissions and increase productivity.
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Opinion: As Natural Gas Prices Continue To Soar In Colorado, We Must Get Off The Fossil Fuel Roller Coaster
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Opinion: As Natural Gas Prices Continue To Soar In Colorado, We Must Get Off The Fossil Fuel Roller Coaster

The post Opinion: As Natural Gas Prices Continue To Soar In Colorado, We Must Get Off The Fossil Fuel Roller Coaster appeared first on Energy Innovation.

Energy bills are complex, but there’s a simple reason prices are soaring: natural gas. Gas makes energy more expensive through volatile commodity prices, soaring delivery charges and worsening climate change.
The post Opinion: As Natural Gas Prices Continue To Soar In Colorado, We Must Get Off The Fossil Fuel Roller Coaster appeared first on Energy Innovation.[#item_full_content]

Blending Hydrogen Into Gas Pipelines Would Enrich Utilities And Harm Californians
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Blending Hydrogen Into Gas Pipelines Would Enrich Utilities And Harm Californians

The post Blending Hydrogen Into Gas Pipelines Would Enrich Utilities And Harm Californians appeared first on Energy Innovation.

Blending hydrogen into pipelines and appliances designed for gas could increase asthma-causing air pollution and cost billions of dollars.
The post Blending Hydrogen Into Gas Pipelines Would Enrich Utilities And Harm Californians appeared first on Energy Innovation.[#item_full_content]

DOE Forces Busted Coal Plant to Stay Online For “Energy Emergency” But Halts 2.5 Million Homes’ Worth Of New Power
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DOE Forces Busted Coal Plant to Stay Online For “Energy Emergency” But Halts 2.5 Million Homes’ Worth Of New Power

The post DOE Forces Busted Coal Plant to Stay Online For “Energy Emergency” But Halts 2.5 Million Homes’ Worth Of New Power appeared first on Energy Innovation.

Government kills clean energy projects that protect consumers, spikes energy bills to keep coal clunkers online.
The post DOE Forces Busted Coal Plant to Stay Online For “Energy Emergency” But Halts 2.5 Million Homes’ Worth Of New Power appeared first on Energy Innovation.[#item_full_content]

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