Flexible interconnection has gone from theory to action.

Across the country, utilities are beginning to pilot new approaches that allow large loads and distributed generation to connect faster by operating within available grid capacity. The idea: instead of requiring new projects to wait years for infrastructure upgrades, utilities can grant earlier access if asset developers and operators agree to flex their electric grid consumption or output during peak constraint hours.

This “flex” doesn’t mean that large loads will need to reduce their electricity usage or that generation assets need to be curtailed, as off-grid backup systems and batteries can support continuous operations while allowing a faster, and less expensive, grid interconnection. 

This shift is happening for a reason. Traditional interconnection processes were designed for a different era, one with fewer new energy resources and less urgency around electrification. But today’s grid demands faster, more scalable solutions. Utilities need the interconnection of large loads and generation to happen more quickly than new grid infrastructure can be built. Flexible interconnection makes that possible even in constrained parts of the grid. As a result, utilities and industry analysts are seeing flexible interconnection show up again and again in public filings, pilot programs, and conferences. 

Why Utilities Are Taking Flexible Interconnection Seriously Now

What’s changed? Load growth, for starters.

For the first time in decades, electricity demand is rising rapidly, led by AI data centers, EV fleet depots, and industrial electrification. This growth is welcomed and needed, but it’s stressing grid capacity and straining capital budgets. Grid buildouts are too slow to keep up, especially when it can take years to plan, permit, and construct a single substation.

State-level climate and economic development targets are also raising expectations for utilities to connect clean energy and large load projects faster and more affordably. Developers can’t afford to wait years for upgrades. As timelines slip, utilities risk missing out on load growth, and customers may seek off-grid alternatives or simply move their development efforts elsewhere.

That’s why utilities are turning to flexible interconnection. It’s a practical way to make the most of what’s already built.

As PG&E’s Alex Portilla put it:

“This is an opportunity for us to offer capacity as it is available in a granular sense, based on actual grid conditions. The alternative is a planning scenario where we do a study and we say this is how much we can serve you 24/7/365 — basically limiting them to the worst-case scenario.”

It’s a win-win for both parties, providing faster access to affordable, reliable, and low-carbon grid power while increasing overall utilization and efficiency of the power system.

And while load growth is a major driver, it’s not the only one. Flexible interconnection is also being propelled by supply chain delays, aging infrastructure, and clean energy goals. These factors are reshaping how utilities think about grid access, planning, and operational agility.

From Theory to Practice—What the Leaders Are Doing

A growing number of utilities are moving from concept to implementation, and just as importantly, they’re sharing what they’ve learned. That openness is critical: while pilots differ in how grid flexibility is implemented, the insights behind them can benefit the entire industry.

PG&E (FlexConnect): PG&E has become one of the most vocal and visible utilities leading on flexible service connections. Its FlexConnect program supports EV fleets, battery storage, and soon, data centers, delivering tailored, grid-aware operating limits through a DERMS platform. Executives like Mike Delaney have emphasized their desire to create a repeatable model:

“We’ve established a template for other utilities to deploy these capabilities right out of the box… Now other utilities across the nation can benefit from the work happening here at PG&E and in California.”

Avangrid (NYSEG & RG&E): In New York, Avangrid has been piloting dynamic solar interconnections using centralized DERMS controls. Their system provides automated feedback from constrained grid points to signal curtailment as needed. A recent report showcased that, for projects in operation, the level of curtailment required is far lower than originally expected, reaching only 0.05% annual network curtailment.

ComEd & National Grid: In the Midwest and New York, these utilities are piloting flexible interconnection as a way to unbottle community solar projects stuck behind hosting capacity limits. In one case, Nexamp’s Director of Grid Integration Strategy and Policy, Benjamin Piiru, stated that “we would have walked away from a project rather than pay for a $50 million upgrade.” Thanks to a flexible approach, that project was able to move forward.

SCE: While less public in its commentary, Southern California Edison has signaled that flexible interconnections are a key part of its “bridging” toolkit—alongside mobile batteries and temporary substations. Their Expanded Interconnection Playbook shows a utility working to define multiple types of grid flexibility to meet diverse customer needs.

These examples show that flexible interconnection is being embraced by forward-looking utilities across the country.

Lessons from Pilots

Operators need to trust it works

When thinking about flexible interconnection, the initial question for most utilities is focused on control. How can operators ensure interconnected resources stay within safe operating limits?

Most early pilots have defaulted to a command-and-control model. Projects like PG&E’s FlexConnect and ComEd’s initial community solar pilots have used direct utility-issued setpoints or DERMS-managed curtailment. That makes sense: it’s familiar and safe.

But it's not the only option.

Illinois’ upcoming flexible interconnection proceeding for ComEd and Ameren is expected to explore both utility-controlled and developer-led approaches. And that’s important, because while utility-led models are gaining traction, developer-managed flexibility may actually be faster and easier to scale without sacrificing reliability. Many fleets and solar developers already use site-level control systems and can manage to a limit as long as it’s clearly communicated and enforceable.

Both approaches have a role to play. The right solution may differ depending on project size, resource type, and the capabilities of the customer. It’s not an either/or choice and utilities may want to pilot both options to identify what works best for their grid and their stakeholders.

Hardware is essential

When relying on customer-sided proactive management to defer infrastructure investments, utilities want a reliable failsafe. That’s why most pilots now incorporate on-site gateways,physical devices that can enforce limits via hard setpoints. A new certification, UL 3141, is emerging to standardize these capabilities, and gateway providers like Critical Loop, ASE, Kitu Systems, and OpenEGrid are leading the way.

These devices complement cloud-based solutions like charge management systems (CMS) or energy management systems (EMS), ensuring that limits are reliably executed regardless of whether or not the utility is in the driver’s seat.

Different projects need different types of grid flexibility

The operating requirements of customers differ significantly, which in turn impacts their preferences around flexibility:

• Data centers typically prefer day-ahead, time-varying operating limits that help them maximize grid access hour by hour and turn to reliable onsite backup to ensure continuous operations. This gives them the ability to connect sooner without compromising uptime.
  
  
• EV fleets often prefer seasonal or time-of-day schedules, which are able to be programmed into local controllers, simplifying operations and avoiding the need to set up cloud to cloud communications.
  
  
• Community solar developers are split: some want time-varying operating limits that maximize output, while others prefer simpler, schedule-based approaches that reduce complexity and integration costs while providing certainty for project financing.

The lesson? One size doesn’t fit all. Utilities are beginning to design offerings that reflect the different operational preferences of their customer segments, often leading to a small spectrum of offers rather than a single approach.

From Operational Curiosity to Planning Innovation

Most utilities tend to dwell on operational concerns first, but planning is the area where change is most pronounced.

Today’s interconnection processes are typically based on point-in-time assumptions: assessing whether a project creates constraints during a single peak hour of the year. That method is overly conservative and often results in viable projects being denied or delayed.

What we need instead is time-series analysis. By evaluating all 8,760 hours of the year, utilities can understand how often a project would actually exceed grid limits, and how much flexibility would be needed to safely accommodate it.

To do this well, utilities need better grid visibility. Many grid operators rely on their DERMS to implement control strategies, but those systems aren’t designed to provide visibility into the real-time or forecasted state of the grid. Just knowing what’s happening—and what would happen under different scenarios—is still a stressful and complex exercise for most distribution operators today. Better visibility is foundational. Without it, we can’t fully understand where flexibility is needed, or how to implement it effectively. Once that visibility is in place, utilities can build the operational frameworks and reliable failsafes to support flexible interconnections at scale. 

Interactive Demo: Time-Series Planning in Action

In this short walkthrough, you can see how a utility planner evaluates adding a 7 MW EV fleet to a constrained site. The result? The fleet would need to reduce its grid consumption during just a few hours per month in order to connect today, rather than wait 2-5 years for grid upgrades.

From Pilots to Playbooks

Flexible interconnection isn’t just a proof of concept, it’s on its way to becoming a standard tool in the grid planning and operations toolbox.

Utilities like PG&E are building repeatable frameworks. Others are surfacing lessons about interoperability, enforcement, and customer preferences. There’s still work to be done, but the early progress is promising.

For utilities trying to keep up with load growth, flexible interconnection offers a powerful bridge: a way to say “yes” to new resources sooner while protecting grid safety and reliability.

The transition is underway. Now’s the time to learn from the leaders and build on what’s working.

If you’d like to learn more about flexible interconnection or have questions for our team, contact us. We’d love to hear from you.