VALLEY FORGE, PA — PJM Interconnection has accepted 715 proposed power projects totaling 201.5 gigawatts into the first cycle of its overhauled interconnection process, putting a potentially large pool of new generation under review as electricity demand across the regional grid rises faster than new supply.
The projects cleared an initial screening after developers submitted 811 proposals by an April 27 deadline. PJM expects the qualifying projects to move through studies over roughly one to two years, depending on their effects on the transmission system.
The cycle represents the first test of PJM’s shift to a “first-ready, first-served” system, which requires developers to demonstrate greater project viability before entering the study process. Requirements include financial commitments, site control and necessary technical information.
Natural gas accounts for nearly half of the proposed capacity, with 147 projects representing 99.8 GW. Battery storage is the largest category by project count, with 314 proposals totaling 60 GW.
The remaining portfolio includes 24 nuclear projects totaling 17.3 GW, 117 solar projects totaling 11.8 GW, 37 solar-storage projects totaling 7.5 GW and 61 wind projects totaling 3.9 GW.
Another 10 projects totaling 1.1 GW fall into a category that includes biomass, coal, fuel cells, fusion energy and methane. Five hydroelectric projects account for about 0.07 GW.
The scale of the pipeline comes as PJM forecasts electricity demand could increase by as much as 70 GW by 2038, driven largely by data centers and other large electricity users. PJM operates the grid serving about 67 million people across 13 states and the District of Columbia.
Demand growth has increasingly put pressure on the region’s ability to bring new generating capacity online quickly enough to replace retiring resources and meet additional consumption.
“PJM is encouraged at the number and quality of applications that are proceeding through the study process to help address the long-term shortage of electricity supply that we are facing,” Jason Connell, PJM’s vice president of planning, said. “The rigorous process that is now in place is designed to encourage projects that will get built.”
Acceptance into the study cycle, however, does not mean the 201.5 GW will ultimately reach the grid. PJM noted that nameplate capacity represents projects’ maximum potential output and that historically only a portion of proposed projects reach interconnection agreements and become operational.
That gap remains significant. Since 2020, PJM has processed more than 300 GW of proposed generation, resulting in more than 100 GW with signed interconnection agreements.
PJM currently has about 51 GW of generation with signed agreements that has yet to enter service. Some projects are not moving forward, while others have been delayed by state permitting requirements and supply-chain constraints.
The grid operator expects to add substantially to the volume of projects with signed agreements when Transition Cycle 2 concludes in early 2027 and the new Cycle 1 finishes in 2028.
The revamped process follows PJM’s effort to clear its previous interconnection backlog and replace the former queue system with one intended to prioritize projects that are further along in development. PJM reported there is no remaining backlog from the prior queues.
PJM is also deploying technology to process the volume of applications, including HyperQ, an artificial intelligence-enabled tool developed by Google’s Tapestry. The grid operator plans to evaluate the system’s performance during the first cycle.
“The number and diversity of projects indicates that developers are eager to build in the PJM region, and we will continue to streamline our processes to meet the speed-to-power needs of the industry,” Connell said. “Bringing new generation online is critical to support grid reliability and control electricity costs by balancing supply and demand.”
Developers will get another indication of potential transmission constraints later this month. PJM plans to publish its summer peak model Aug. 28, followed by winter peak and light-load cases Sept. 11.
Those models are intended to identify potential system impacts ahead of the first phase of studies and give developers additional information as they decide whether to continue with their projects or withdraw from the cycle.
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