PJM Interconnection has launched a reformed generator interconnection process that will evaluate 715 projects representing more than 200 gigawatts of proposed capacity under a “first-ready, first-served” framework requiring upfront financial commitments, replacing a first-come-first-served system that saw 74 percent of studied projects withdraw between 2020 and 2026. The new approach aims to clear a years-long backlog and accelerate the addition of reliable generation as the region faces a widening capacity shortfall driven by load growth and thermal retirements.
Natural gas-fired projects dominate the revised queue at nearly 100 gigawatts, followed by 60 gigawatts of storage and 17 gigawatts of nuclear, reflecting both the current economics of dispatchable resources and state-level policy support for clean firm capacity. Pennsylvania, Ohio, and Virginia together account for roughly half of the requested megawatts, underscoring the concentration of development activity in states with large wholesale markets and relatively favorable siting environments. The one- to two-year study timeline PJM has signaled represents a meaningful compression compared to the multi-year delays that became routine under the previous process.
The readiness requirements β including site control, financial security, and evidence of equipment procurement progress β are designed to filter out speculative entries that previously clogged the queue and forced serious developers to wait behind projects with little prospect of reaching commercial operation. By tying queue position to demonstrated commitment, PJM is aligning its process more closely with reforms FERC has encouraged nationwide through Order No. 2023, though the RTO’s specific implementation goes further in some respects by front-loading financial exposure for applicants.
Whether the new process delivers the throughput PJM and its stakeholders need will depend on the operator’s ability to maintain study discipline while managing a still-massive portfolio of projects, and on whether transmission upgrades identified in the studies can be approved and built on schedules that match generation timelines. The capacity gap is not a theoretical concern; PJM’s most recent capacity auction cleared at prices reflecting tight supply, and the reliability construct depends on converting a higher share of queued megawatts into operational resources than the historical 26 percent completion rate.
Read the full report at Energy Central.