What is the function of an interconnection agreement?

An interconnection agreement plays a crucial role in the integration of distributed generation systems into the existing power grid. Its primary function is to outline the terms, conditions, and responsibilities of various stakeholders involved in the connection process. This agreement typically includes technical standards, roles in operation and maintenance, and regulatory compliance, ensuring that the distributed generation source can safely and efficiently connect to the grid without causing disruptions.

By providing a clear framework for the interconnection, the agreement helps facilitate the coexistence of distributed energy resources with the traditional grid, promoting reliability and stability in energy supply. Understanding the significance of such agreements is vital for anyone involved in energy management, as they ensure that the integration of renewable and distributed energy sources aligns with grid requirements and operational standards.