VALLEY FORGE, PA — PJM Interconnection, the nation’s largest electric grid operator, is poised to inject a significant amount of new generation into its network thanks to a successful reformation of its interconnection process. The Pennsylvania-based company anticipates clearing 300 new generation projects totaling 26,000 megawatts (MW) in 2024. This signifies substantial strides in incorporating renewable energy and other generation types into the grid.
Furthermore, PJM has flagged an additional 46,000 MW of nameplate generation capacity slated to complete the study phase and be construction-ready by mid-2025. This amounts to a total of 72,000 MW of projects, predominantly renewable and battery resources, expected to finish the process by then.
The reform in the interconnection process has expedited the study of thousands of new generation projects aiming to connect with the PJM grid. “While siting and supply chain issues continue to slow the development of new generation resources, there will be a growing number of projects approved for interconnection in the near term,” said Ken Seiler, Sr. Vice President of Planning at PJM.
However, as of the end of 2023, about 40,000 MW of projects that had completed the PJM study process remained in the construction phase due to challenges such as siting, supply chain, and financing.
The revamped interconnection procedure was rolled out in July 2023, making 734 projects eligible for evaluation in the first step. Of these, 118 either withdrew from the process or failed to meet sufficient readiness requirements by the deadline. Consequently, the queue was cleared of projects that were less likely to be developed but still demanded the same time and resources from PJM.
The remaining 616 projects were evenly divided into two workstreams: 308 projects with lesser system impact qualified for an Expedited Process, or “Fast Lane,” with final documentation to be issued throughout 2024. The other 308 projects will be studied as part of the first transition cycle, accounting for an additional 46,000 MW of new generation, expected to clear the process by mid-2025.
PJM’s interconnection process reform, which received broad stakeholder support and was approved by the Federal Energy Regulatory Commission in November 2022, has transitioned from a “first-come, first-served” queue approach to a “first-ready, first-served” cycle approach. This new process improves cost certainty for network upgrades and significantly enhances the overall process by which new and upgraded generation resources are studied and introduced onto the electrical grid.
As a result of this transition, PJM is setting the stage for more than 260,000 MW of predominantly renewable projects to be studied over the next three years, paving the way for a greener and more sustainable energy future.
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