Regulation
An interconnection agreement is a contract between a power generator (such as a solar farm or wind farm) and a utility or grid operator that governs the connection of the generator to the electricity grid. This agreement outlines the technical requirements, costs, timelines, and operating rules for safely linking the renewable energy project to the grid. It ensures that the energy from the project can be delivered into the network without compromising grid reliability. For solar developers, securing an interconnection agreement is a critical step; it often involves grid impact studies and meeting grid code standards before the project can send electricity to the power system.