PJM Interconnection announced that 715 new generation projects, capable of generating more than 200 gigawatts (GW) of electricity, have qualified to be studied in the first cycle of PJM’s reformed interconnection process.

This marks the first group of proposed generation resources to be processed under a new approach designed to “reduce speculative projects, improve predictability and increase the overall pace of interconnection,” PJM said.

Projects will be reviewed in the cycle, which is designed to be a one- to two-year process, depending on the impact of an individual project. There is no remaining backlog from prior queues, PJM added.

“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,” said Jason Connell, Vice President – Planning. “The rigorous process that is now in place is designed to encourage projects that will get built.”

The application window closed April 27 and drew 811 proposals for new resources, subject to an initial screening process that vets applications for required technical information and financial deposits. PJM’s new “first-ready, first-served” approach requires projects to demonstrate viability before entering the cycle study process, including up-front financial commitments and proof of site control.

The applications include:

• 715 total projects, led by storage (314), natural gas (147), solar (117), wind (61), solar-storage hybrids (37), nuclear (24), other (10), and hydro (5)
• 201.5 GW of nameplate capacity, led by natural gas (99.8 GW), storage (60.0 GW), nuclear (17.3 GW), solar (11.8 GW), solar-storage hybrid (7.5 GW), wind (3.9 GW), other (1.1 GW) and hydro (0.07 GW)

The “other” category includes biomass, coal, fuel cell, fusion energy and methane. PJM noted that the nameplate capacity figures cited represent the maximum potential output of a resource into the system. Based on historical performance, only a percentage of projects that apply for interconnection will sign interconnection agreements and become operational.

“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.”

PJM is using new tools and pathways it has implemented in recent years, including HyperQ, an AI-enabled tool developed by Google’s Tapestry to help review large volumes of application data. PJM will be evaluating the tool’s impact throughout Cycle 1.

PJM expects electricity demand to increase by up to 70 GW by 2038, driven largely by data centers and other large load customers. PJM argues that demand growth is outpacing the addition of new supply, risking reliability and making the timely interconnection of new resources “critical.”

Since 2020, PJM has processed more than 300 GW of projects, resulting in over 100 GW worth of projects with signed interconnection agreements. PJM currently has 51 GW of generation with signed agreements, but many of these projects are either not being built at all or are being slowed by hurdles like state permitting and supply chain backlogs.

PJM expects to “significantly” add to the number of projects with signed agreements at the completion of Transition Cycle 2 in early 2027 and Cycle 1 in 2028.

PJM will post its summer peak model on Aug. 28, with the winter peak and light load cases following on Sept. 11. This is meant to allow developers to understand potential system impacts that may arise in the Phase 1 study and inform their decision to proceed or withdraw.

Is PJM bouncing back?

PJM Interconnection saw its queue become so backlogged that the regional transmission organization (RTO) effectively shut it down in 2022 to rework its processes. In April, the RTO began once again reviewing interconnection requests for new energy generation and storage projects.

PJM argues its interconnection process is not standing in the way of generation development, and that the focus should be on clearing other hurdles to construction, including speeding up permitting timelines.

After last October’s “Critical Issue Fast Path” process to address large load additions produced no consensus solutions (and at the direction of the PJM Board, Governors of the 13 PJM states, and the White House), PJM has undertaken an ambitious set of reforms. These include: 

• Designing and implementing backstop reliability procurement: PJM released its proposal on April 10 and filed it with FERC in July, following an extremely abbreviated stakeholder process. The idea is to start this in September. Learn more here.
• Implementing an “Expedited Interconnection Track“: Filed with FERC on February 27 and approved in June, this two-year interim plan would provide a quicker path for advanced projects of significant size (250 MW of accredited capacity or greater) to connect and meet the grid’s immediate supply needs. No more than 10 approved projects would be selected for a calendar year to be studied outside the normal cluster process.
• Complying with FERC’s December 2026 Show Cause Order: This requires that PJM set clear rules for co-located load and generation, including the creation of three new transmission service options and new rules for behind-the-meter generation (BTMG).
• Designing and implementing “connect and manage” for new large loads: This would enable PJM to manage generation shortfall by setting clear load shed protocols that aim to minimize disruption to existing, non-large load customers. The extent to which this approach will enable and reward demand-side flexibility and create opportunities for DERs remains to be seen. 
• Pursuing further reforms to the load forecast: To ensure the region is planning for the right level of load growth, given the high cost of over-procuring and over-building. 
• Undertaking a comprehensive review of market incentives: To identify what reforms might be needed in the medium-to-long term to maintain reliability and resource adequacy. PJM is working on this review behind-the-scenes and is currently anticipating a mid-year release that will feed into a stakeholder process.