FERC Approves SPP Plan to Reduce Grid Congestion with Topology Optimization

The Federal Energy Regulatory Commission has given the green light to the Southwest Power Pool's plan to use topology optimization to reduce grid congestion and its associated costs. This approach is expected to provide a less expensive way to handle congestion compared to traditional methods.

## Background on Grid Congestion Traditionally, grid operators have responded to grid congestion by redispatching power plants, which can lead to higher production and congestion costs. However, with the advent of grid-enhancing technologies, grid operators can now use topology reconfiguration to change power flows and mitigate congestion. The Southwest Power Pool, which operates the grid in 17 states, has proposed using this approach to reduce congestion and costs.

## How the Plan Works Under the approved plan, market participants will be able to submit proposals for reconfigurations due to power plant outages or grid constraints. The grid operator itself may also offer a reconfiguration. The Southwest Power Pool will then analyze the potential reconfigurations to determine if the wholesale market as a whole will benefit from the reconfiguration. The grid operator will also assess the reconfiguration's effect on grid reliability before approving a change.

## Potential Benefits and Support A study conducted by NewGrid, SPP, and the Brattle Group found that historical system operating limit violations could be eliminated for 75% of the constraints that were analyzed, with potential congestion cost savings of $18 million to $44 million a year. The plan has been supported by various stakeholders, including Advanced Energy United, the Working for Advanced Transmission Technologies Coalition, and a joint filing by Evergy, Enel North America, and EDF Power Solutions. The Midcontinent Independent System Operator's success with economic topology reconfiguration, which has saved $95 million so far this year, was also cited as an example of the potential benefits of this approach.

The following table compares the potential benefits of topology optimization: | Category | Potential Savings | | --- | --- | | Congestion costs | $18 million to $44 million a year | | MISO savings | $95 million |

The approval of the Southwest Power Pool's plan is seen as a significant step forward in reducing grid congestion and costs. FERC commissioners Judy Chang and David Rosner have urged other grid operators to adopt topology optimization as a means for better managing power flows, including during extreme weather conditions. The Electric Reliability Council of Texas is also set to implement a topology optimization mechanism early next year.