The Grid Fast Lane: Can BASED Break America’s Clean Energy Bottleneck?

Imagine spending years developing a state-of-the-art clean energy project. You secure the land, complete the engineering, raise the capital, purchase the equipment, and prepare to generate electricity.

Then you are told to wait years before you can plug it into the grid.

This is not a hypothetical problem. It is one of the defining barriers confronting solar, wind, and battery storage development across the United States.

In this episode of The Solar Coaster, Anna Covert and Alex Herrera examine a newly introduced federal proposal that could fundamentally change this process: the Grid Connection and Congestion Management Act and its proposed Basic Access Service for Energy-Only Delivery, known as BASED.

The concept is bold. Instead of forcing every project to wait for all possible transmission upgrades before it can connect, qualifying generators could receive faster access while agreeing to reduce output when the grid becomes congested.

It is a shift from “build first” to “manage first.”

Why Grid Interconnection Has Become the Ultimate Bottleneck

The clean energy industry has solved many of the challenges that once limited solar deployment.

Solar technology has improved. Battery storage has advanced. Capital is available. Corporate and utility demand for clean power continues to grow.

But a project cannot provide energy until it is connected to the transmission system.

Traditional interconnection reviews are designed around reliability and certainty. Grid operators model numerous conditions to determine how a new generator could affect thermal limits, voltage, stability, short-circuit conditions, congestion, and the deliverability of electricity throughout the network.

That caution serves an important purpose. The electric grid must remain reliable.

However, the process can also result in enormous network-upgrade requirements, uncertain costs, repeated studies, and years of delay. FERC has acknowledged that generation and storage projects have faced average waits of up to five years, with more than 2,000 gigawatts previously sitting in U.S. interconnection queues. FERC has already adopted reforms intended to improve that process.

The newly proposed BASED framework would go further by creating a separate form of energy-only access.

What Does BASED Mean?

BASED stands for Basic Access Service for Energy-Only Delivery.

Under the proposal, federally regulated regional transmission organizations and independent system operators would need to establish a fast-track pathway for qualifying generating facilities.

The review would focus primarily on the facilities and upgrades needed to make the point of interconnection physically safe and stable.

The project could then inject electricity subject to operating limits and congestion-related curtailment.

In practical terms, the generator gains speed but gives up certainty.

It may connect much earlier, but it does not receive an unconditional guarantee that every possible unit of power can always be delivered through the transmission network.

The Texas Connect-and-Manage Model

The proposal draws heavily from the approach associated with ERCOT in Texas.

Rather than requiring developers to fund every network upgrade necessary to guarantee deliverability before connecting, the Texas model allows projects to enter the system with the understanding that congestion may be managed operationally.

Think of the transmission network as a highway.

The traditional approach asks whether the highway can handle every additional vehicle during the worst possible traffic conditions. If the answer is no, the new driver may be required to help pay for another lane before entering.

Connect and manage allows the driver onto the highway after a safety review. During periods of congestion, traffic-management systems may require some vehicles to slow down or temporarily pull over.

FERC itself has examined ERCOT’s method as a possible model, noting that the region accepts congestion and curtailment risk while moving broader network upgrades into the transmission-planning process.

From Build First to Manage First

The philosophical change is just as important as the procedural one.

The traditional grid was built around physical redundancy and worst-case planning. Reliability frequently meant constructing enough infrastructure to handle extreme scenarios before new generation could connect.

BASED assumes that some constraints can instead be handled through active operations.

That could include:

  • Real-time dispatch
  • Automated congestion management
  • Generation curtailment
  • Battery charging and discharging
  • Dynamic operating limits
  • Advanced monitoring and grid software

This is part of a broader theme explored through The Solar Coaster’s extended energy and technology coverage: the grid is becoming a digital system, not merely a collection of steel, copper, transformers, and substations.

The Financial Trade-Off for Developers

Faster connection does not eliminate risk. It changes the type of risk.

Under the traditional process, a developer might spend years waiting for studies and then receive a network-upgrade bill large enough to destroy the project’s economics.

Under BASED, that developer might begin generating revenue much sooner but experience periodic curtailment.

The decision becomes a financial calculation:

Is it better to wait years for more secure transmission rights, or connect earlier and accept that some energy may not be delivered during congested periods?

For many developers, particularly those with flexible offtake arrangements or battery storage, the second option may be attractive.

Why Battery Storage Could Be a Major Winner

Curtailment does not always need to mean wasted energy.

A solar facility paired with storage may be able to charge its batteries when the transmission system is congested. Once the constraint clears or energy prices improve, the stored electricity can be discharged.

This strengthens the value of battery storage as more than backup power.

Storage becomes a congestion-management asset capable of reshaping when energy enters the grid.

That could improve project revenue, support grid operations, and reduce the amount of clean generation that would otherwise be curtailed.

A Possible Fast Pass Around Cluster Studies

Another significant element of the bill is the option for a BASED request to be evaluated independently from a grouped or cluster study.

FERC’s existing reforms require transmission providers to study many projects together in clusters. That can improve coordination, but one project’s timing may still depend on a much larger group.

Under the proposed legislation, a grid operator could not delay a qualifying BASED evaluation solely because a broader cluster study remained unfinished.

That effectively creates a separate lane for projects willing to accept energy-only service and curtailment exposure.

Why Create BASED When ERIS Already Exists?

Energy Resource Interconnection Service, or ERIS, already exists under FERC’s standard framework.

In theory, ERIS is less demanding than Network Resource Interconnection Service because it is intended to support energy delivery without the same level of guaranteed deliverability.

In practice, ERIS projects in many regions can still face extensive study requirements and network-upgrade costs.

The proposed bill attempts to define a more specific and legally binding alternative. It would limit the upgrades that can be imposed through the BASED evaluation and prevent grid operators from requiring improvements based solely on increasing deliverability or reducing future curtailment.

FERC Would Be the Enforcer

The legislation would require affected regional operators to revise their open-access transmission tariffs and submit the changes to the Federal Energy Regulatory Commission.

FERC would review whether the proposed rules, rates, and conditions are just, reasonable, and not unduly discriminatory.

This matters because the success of BASED would depend heavily on implementation.

A fast-track option that becomes buried under additional local rules, delays, or overly conservative assumptions would not achieve the proposal’s purpose.

Can Software Substitute for Steel and Copper?

BASED also raises a larger question about the future of infrastructure.

Can active management, software, automation, and storage help the existing grid operate closer to its limits?

Other industries routinely use digital tools to optimize physical assets. Airlines manage limited runway capacity through scheduling. Cloud platforms dynamically allocate computing resources. Navigation systems redistribute traffic across existing roads.

The electric grid has traditionally relied more heavily on physical overbuilding to protect reliability.

That does not mean new transmission is unnecessary. The country still needs substantial investment in power lines, substations, and transformers.

But faster interconnection and smarter operations may allow clean energy to begin serving customers while those longer-term upgrades are planned and built.

The Political and Operational Debate

Utilities and grid operators may raise legitimate concerns.

Managing more generators through real-time curtailment shifts complexity into the control room. Operators would need dependable data, strong communications, automated dispatch tools, cybersecurity protections, and clear rules determining which projects are reduced and when.

Developers will also want to understand the financial consequences of curtailment. Consumers may ask who bears congestion costs and whether the approach could affect electricity prices.

The bill remains a proposal, not settled law. It was introduced as S. 5008 and referred to the Senate Committee on Energy and Natural Resources.

The Grid Rulebook May Determine the Energy Future

The success of the energy transition may not depend only on inventing a more efficient panel or a cheaper battery.

It may depend on rewriting the technical rules that determine whether those technologies can connect.

A solar project that cannot reach the grid is not an energy resource. It is stranded infrastructure.

BASED represents an acknowledgment that the regulatory framework may need to evolve as quickly as the technology it governs.

Whether the proposal becomes law or not, the national conversation has changed. The country is moving away from a simple “build first, connect later” mindset and toward a more dynamic debate about how to manage traffic on the electrical highways we already have.

Explore more episodes and industry insights at SolarCoasterBook.com.

Sponsored by Sun Energy Today

This episode is sponsored by Sun Energy Today, a commercial solar and storage developer focused on MW-scale infrastructure and long-term energy resilience.

🌐 https://sunenergytoday.com/
💼 https://www.linkedin.com/in/atzael-herrera/

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Full Podcast Transcript:

The Grid Fast Lane: Can the BASED Act Solve America’s Clean Energy Interconnection Crisis?

In this episode of The Solar Coaster, Anna Covert and Alex Herrera explore the Grid Connection and Congestion Management Act, the proposed BASED service, and whether a national “connect and manage” model could help break America’s renewable energy interconnection backlog.


Anna Covert: Imagine spending years developing a state-of-the-art clean energy project, securing the land, getting the funding, and buying the equipment, only to be told you have to wait in a virtual line for seven years just to plug it into the electrical grid. It sounds like a bureaucratic nightmare, but it is the actual reality for thousands of wind, solar, and battery storage projects across the United States right now. The grid is essentially full, or at least, that is what the traditional rules tell us. But what if we are looking at the problem all wrong? What if the solution isn't just building thousands of miles of new transmission lines first, but changing the basic rules of how we let new power sources connect?

Alex Herrera: It is the defining bottleneck of the modern energy transition. Right now, there are more megawatts of clean energy sitting in these interconnection queues waiting for approval than the entire operating capacity of the current U.S. power grid. The system we have relied on for decades is built on a philosophy of absolute certainty. Grid operators want to study every possible scenario, calculate every potential overload, and force developers to pay for massive network upgrades before they are allowed to send a single kilowatt-hour to consumers. It is safe, but it is incredibly slow. And that is why this new legislative push in the Senate is drawing so much attention. It proposes a fundamental shift in how we manage the grid, borrowing a page from a very unlikely pioneer in energy policy: Texas.

Anna Covert: It is fascinating because when people think of progressive energy policy, Texas might not be the first state that comes to mind. Yet, their grid operator, ERCOT, has managed to connect over one hundred gigawatts of new capacity in just a four-year span. That is vastly more than any other region in the country. And the secret weapon behind that speed is a regulatory approach known as connect and manage. Now, a new bill introduced by Senator Martin Heinrich aims to take this Texas model and mandate it nationwide.

Alex Herrera: The contrast between Texas and the rest of the country is stark. The bill itself is called the Grid Connection and Congestion Management Act. What it proposes is to amend the Federal Power Act to make it legally unjust and unreasonable for federally regulated grid operators not to offer a similar fast-track option. The bill calls this new service BASED, which stands for Basic Access Service for Energy-Only Delivery. The goal is to force regional transmission organizations and independent system operators to offer this streamlined connection service within twelve to eighteen months of the bill passing.

Anna Covert: So let us break down what connect and manage actually means in practice, and how this BASED service would work. How does it differ from the traditional process that is causing these massive multi-year backlogs?

Alex Herrera: Think of the traditional process, which is often called Network Resource Interconnection Service, as a highly conservative highway system. Before the grid operator lets you build a new subdivision and connect its access road to the highway, they run complex simulations. They want to ensure that even on the busiest holiday weekend of the year, with maximum traffic, the highway will never slow down. If their simulations show a bottleneck ten miles down the road, they tell the developer they cannot connect until they pay to add an extra lane to that highway. That is why projects get stuck. They are hit with unexpected, multimillion-dollar bills for network upgrades. Connect and manage, or this new BASED framework, takes a completely different approach. It says, we will let you connect to the highway right now. We will do a quick safety check to make sure your connection point is stable and won't cause a crash. But if the highway gets congested in the future, we reserve the right to tell you to pull over or slow down.

Anna Covert: That is the operational measures part of the bill. Instead of building massive physical infrastructure upgrades upfront to handle the absolute worst-case scenario, the grid operator uses software and real-time management. If there is too much power flowing on a line, they tell certain generators to scale back their output. In the industry, they call this redispatch or curtailment.

Alex Herrera: Exactly. Under the BASED framework, the grid operator's evaluation would only look at what is necessary to ensure the physical connection is safe and stable. We are talking about steady-state thermal and voltage limits, short-circuit analysis, and basic stability. They have to assume that any local congestion can and will be managed through these operational tools, like curtailing generation when things get tight. The bill explicitly states that operators can only demand physical grid upgrades if operational measures are physically incapable of maintaining grid reliability. It shifts the default setting from build first to manage first.

Anna Covert: It sounds like a common-sense solution, but I imagine it introduces a new set of risks for developers. If you are a solar developer, and you agree to this BASED service, you get online much faster, but you also accept the risk that you might be curtailed. You might be told to turn off your panels on a sunny day because the transmission lines are full. How do developers balance that risk?

Alex Herrera: That is the trade-off. It changes the financial math. Under the old system, you might wait seven years and then get hit with a fifty-million-dollar upgrade bill that kills your project anyway. Under the BASED system, you can start generating revenue in two years, but you have to accept that maybe five or ten percent of your potential energy might get curtailed during peak hours. For many developers, especially those paired with battery storage, that is a risk they are eager to take. If you have a battery on-site, you don't even have to waste that energy. You just store it when the grid is congested and sell it later when the lines clear up. That is why this bill is such a big deal for the energy storage sector. It unlocks the true value of batteries as grid congestion management tools.

Anna Covert: And the bill doesn't just offer this as an option; it actively gives these projects a way to bypass the queue. Can you explain how the priority mechanism works? Because right now, the queue itself is a giant bottleneck where projects are grouped together in massive studies that can take years to complete.

Alex Herrera: This is one of the most aggressive parts of the legislation. It allows a developer requesting BASED service to elect to have their project evaluated independently of those massive, grouped study processes. The grid operator is flatly prohibited from delaying a BASED request just because they are waiting on a larger group study. It is essentially a fast-pass lane. If you are willing to accept the risk of operational curtailment, you get to skip the line. And the bill also outlines a clear transition path. If a developer starts with BASED service to get online quickly, they can still apply to transition to a full network service later if they want to secure guaranteed, non-interruptible transmission rights.

Anna Covert: So it gives them flexibility. Get online, start generating cash flow, and then figure out the long-term upgrades later. But this brings up an interesting policy question. We already have something in the existing federal rules called Energy Resource Interconnection Service, or ERIS, which is supposed to be similar to this energy-only concept. Why do we need a new law to create BASED if ERIS already exists?

Alex Herrera: That is a crucial point, and the data on this is really telling. The Lawrence Berkeley National Laboratory did a study on this exact issue. They looked at ERIS projects outside of Texas and found that since 2010, they weren't actually getting processed any faster than the standard, more rigorous studies. Even though ERIS was designed to be a lighter option, grid operators outside of Texas still dragged their feet, applying the same slow, bureaucratic study methods. The system was bogged down by institutional inertia. Senator Heinrich's bill essentially recognizes that trying to reform the existing ERIS rules is a losing battle. Instead of trying to patch a broken system, the bill starts from scratch. It defines BASED with very specific, legally binding parameters that force grid operators to change their study assumptions. It takes away their ability to treat these light connections like massive infrastructure projects.

Anna Covert: It seems like it is trying to force a cultural shift in how grid operators view their jobs. Traditionally, their primary directive has been reliability at all costs, which naturally leads to extreme conservatism and slow decision-making. By legally defining BASED and setting tight timelines, the bill is pushing them toward active management. But how does the Federal Energy Regulatory Commission, or FERC, fit into this? They are the ones who actually oversee the grid operators.

Alex Herrera: FERC is the enforcer here. The bill sets a tight timeline for them. Within six to twelve months of the bill's enactment, all regulated grid operators have to submit revised tariffs to FERC detailing how they will implement this new study process and meet the new timelines. FERC then has the authority to either accept those proposals or step in and dictate the terms, rates, and conditions themselves to ensure they are fair and non-discriminatory. It gives FERC the teeth it needs to make sure these regional operators don't just drag their feet or create compliance rules that defeat the purpose of the law.

Anna Covert: Let us step back and look at the bigger picture. If this bill passes, and we see a massive wave of new projects connecting quickly under the BASED framework, what does that do to the overall stability of the grid? If we are suddenly managing hundreds of gigawatts of power through operational measures and curtailment, doesn't that make the grid much more complex to run?

Alex Herrera: It absolutely does. It shifts the complexity from the planning phase to the operational phase. Instead of spending years calculating things on paper to make sure the grid is physically foolproof, control room operators will have to rely on advanced software, automated dispatch systems, and real-time data to balance the system second by second. It requires a much more dynamic, intelligent grid. Some traditionalists worry that this increases the risk of instability. But proponents argue that we already have the technology to manage this. The success in Texas shows that it is highly doable. ERCOT has integrated massive amounts of wind, solar, and storage without sacrificing reliability, largely because they have embraced this active management style.

Anna Covert: And there is a deeper philosophical question here about how we view infrastructure. For a long time, the American approach to infrastructure was to build it big, build it robust, and build it to last without needing constant intervention. But in an era where we need to decarbonize rapidly, we might not have the luxury of waiting decades to build the perfect physical network. This bill suggests that software, smart algorithms, and active management can substitute for physical steel and copper in the ground.

Alex Herrera: That is the core paradigm shift. It is the digitization of the grid. In almost every other industry, we have seen software optimize existing physical assets to run much closer to their actual limits. Think of how ridesharing apps get more utility out of existing cars, or how cloud computing optimizes server usage. The electricity grid has been one of the last holdouts of the analog era, where we still rely heavily on over-building physical assets to ensure reliability. This bill is a legislative nudge to force the grid into the digital age. It says we cannot afford to wait for perfect transmission lines when we have clean energy ready to deploy today.

Anna Covert: Of course, the bill still has a long way to go. It has been referred to the Senate Committee on Energy and Natural Resources, where Senator Heinrich is the ranking member, so it has a powerful champion. But there will undoubtedly be pushback from utility companies and grid operators who are wary of the operational challenges and the loss of control over their planning processes.

Alex Herrera: The political battle will be intense. Utilities often make their profits by building physical infrastructure, so a shift toward software-based management and away from massive capital projects could impact their bottom lines. There will also be legitimate debates about who bears the cost when curtailment happens, and whether this approach might lead to higher costs for consumers in the form of redispatch payments. But the sheer pressure of the interconnection backlog is becoming unsustainable. When you have billions of dollars of private capital waiting to build clean energy, and the only thing stopping them is regulatory red tape, the pressure for reform becomes overwhelming.

Anna Covert: It really highlights the tension between the urgent need for speed and our traditional desire for absolute reliability and predictability. As we look to the future, the success of the energy transition might not depend on inventing a better solar panel or a cheaper battery, but on rewriting the dry, technical rules of grid connection. It is not the most glamorous topic, but it is where the real battle for the future of energy is being fought.

Alex Herrera: It is the ultimate bottleneck. You can have the best clean technology in the world, but if you can't plug it in, it is just expensive lawn ornament. This bill is an acknowledgment that our regulatory framework has to evolve at the same speed as our technology. Whether BASED becomes the new national standard or not, the conversation around how we connect to the grid has permanently changed. We are moving away from the era of build first, ask questions later, and entering an era of smart, dynamic grid management. The future of our energy system depends on how quickly we can learn to manage the traffic on our existing electrical highways.

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