Flexible Interconnection

Flexible interconnection is a connection arrangement in which a generator, storage project or large load is allowed onto the grid before the network has been reinforced, on condition that the operator can limit its export or import when the network is constrained. Instead of waiting years for upgrades sized for its full capacity at all times, the project accepts a curtailable or time-limited connection, often called a non-firm or conditional connection.

The operator usually enforces the limits through an active network management system or a dynamic operating envelope that sends set points to the site based on real-time loading of nearby lines and transformers. Connection terms define the curtailment rules, such as last in first out or pro rata sharing, along with any caps on curtailment hours and whether the arrangement converts to firm access once reinforcement is complete.

Distribution operators in Great Britain have offered flexible connections for more than a decade, and the approach is spreading across Europe, Australia and North America, including as a faster route to connect data centers and electrified industrial loads. Regulators see it as a way to use existing capacity more fully, shorten queues and defer reinforcement.

The trade-off is revenue risk. Developers must estimate expected curtailment from network data, the other flexible connections in the same area and future reinforcement plans. Co-locating storage, shaping the export profile and forecasting local constraints all help make a flexible connection bankable. Lenders typically ask for an independent curtailment study and look for contractual caps or compensation before treating the connection as financeable.