PA Environment Digest Blog: PJM Interconnection Announces New Project Evaluation Process Begins July 10; More Than 260,000 MW Of Mostly Renewable Projects In Queue

On July 6, the PJM Interconnection announced its new process for evaluating electrical generation or storage projects for connection to the regional electrical grid will begin July 10.

PJM said 95% of the 260,000 MW projects now in its queue are renewable energy generation, battery storage or a hybrid of both.

“In collaboration with stakeholders, PJM has made landmark reforms to its interconnection process. We recognized how critical it was to improve the process to move new projects through the planning queue, and those reforms are about to begin,” said Ken Seiler, Vice President – Planning.

The reforms are a culmination of collaboration between PJM and stakeholders to create a plan to streamline generation interconnection requests, improve project cost certainty, and significantly improve the process by which new and upgraded generation resources are introduced onto the electrical grid.

Among other reforms, the process moves from a “first-come, first-served” queue approach to a “first-ready, first-served” cycle method.

It includes decision points along the way at which the developers must submit readiness deposits and demonstrate site control, or withdraw their projects.

These requirements are expected to weed out the large number of speculative projects that have contributed to existing backlogs.

Starting on July 10, PJM will open a 60-day window for developers in transition to post the readiness requirements.

In September, PJM will update its models with those generators qualifying to enter the transition and begin processing projects with no or minimal system impacts that qualify for a “fast-lane” process.

Queue Scope

PJM also created the new Queue Scope tool, which enables developers to better assess the engineering and financial impacts of a project at various locations on their own before they formally enter PJM’s interconnection queue.

This should save them, particularly smaller developers, time and money and result in more viable projects to be studied by PJM.

FERC approved the interconnection process reforms on Nov. 29, 2022.

44,000 MW Already Approved, Not Built

While the reforms should process enough megawatts to handle PJM’s peak summer demand, Seiler noted in a recent column his concern that projects are making it through the queue but not getting built.

About 44,000 MW of projects have completed the PJM study process but have yet to move to construction, due to siting, financing, supply chain, or other issues. [PJM told a Senate hearing in February most of these Megawatts are renewable projects. Read more here.]

In 2023, less than 2,200 MW of projects have come online; in 2022, that number was 2,000 MW.

“Our transition plan should process enough interconnection requests to make up for retiring thermal generators – now, we just have to work together to make sure these new projects come online,” Seiler said.

By the end of 2024, PJM expects to have cleared about 62,000 MW for connection, another 100,000 MW by the end of 2025, and an additional 100,000 MW by the end of 2026.

The PJM system’s current total capacity is about 184,000 MW.

Additional information and frequently asked questions about the transition to the new interconnection process can be found on the PJM Interconnection Process Reform webpage.

NewsClips:

-- WESA/StateImpactPA: In PA, Renewable Energy Projects Could Come Online Faster With New PJM Interconnection Grid Policy

-- Inside Climate News: PJM Interconnection Grid Operator Must Process And Connect Backlogged Clean Energy Projects, New Report Says

-- UtilityDive: Most Of US Faces Elevated Risk Of Blackouts In Extreme Heat This Summer, North American Electric Reliability Corp Warns

-- Bloomberg: Natural Gas Power Plants, Now The Top Source Of Electricity In U.S., Are To Blame For One Of The Grid’s Biggest Vulnerabilities When Weather Gets Rough

-- Canary Media: Natural Gas Is The Pillar Of US Electric Generation, It’s Also Unreliable

-- Inquirer: POWER’s People’s Renewable Energy Plan For PECO Rally Drew A Small But Committed Crowd

-- WPost Guest Essay: Renewables Are Saving Texas As Coal, Natural Gas Plants Go Offline - Again - So Give Them Their Due

-- Utility Dive: Texas Electric Grid Has Remained Stable Despite 9.6 GW Of Coal, Natural Gas Power Plants Being Offline; Renewables Logged New Records In Generation