High Level
Two developments shaped interconnection this week. Wood
Mackenzie reported measurable improvements in processing under FERC’s 2023
reforms, with record interconnection agreements and sharper screening of
speculative projects. At the same time, PJM’s Board invoked an accelerated
process to craft rules for rapid large‑load interconnections, driven by
unprecedented data center growth and tightening capacity conditions.
Full View
Order 2023 shows early progress clearing queues; outcomes
remain uneven by region
• What happened: On August 13, Wood Mackenzie said regional operators
processed 33% more interconnection agreements in 2024 than in 2023, set a
record 75 GW of secured capacity in 2024, and had already secured 36 GW through
July 2025. New entries declined 9% while withdrawals of non‑viable projects
rose 51%, helping reduce backlogs. ERCOT leads on speed and success rates; ISO‑NE
is slower until its cluster transition completes; CAISO moves faster but has
lower success given a higher share of speculative proposals. Solar and storage
account for most signed agreements; gas requests are up since 2022 though
approvals have fallen in PJM, MISO, and ERCOT.
• Who did it: Wood Mackenzie analysis via the Lens Power &
Renewables platform.
• Why they did it: To evaluate whether clustering and stricter timelines
are delivering faster, more bankable interconnection outcomes as demand rises.
• What happens next: Watch whether 2025 matches 2024’s record and
whether ISO‑NE and CAISO performance converges as clustering and screening
continue.
Wood Mackenzie, “5 key questions about US grid interconnection
answered,” Aug. 13, 2025
PJM fast‑tracks rules for interconnecting very large
loads, targeting a December FERC filing
• What happened: On August 8, PJM’s Board invoked the Critical Issue
Fast Path to design reliability‑focused solutions for interconnecting very
large loads such as data centers. PJM is targeting a December 2025 filing at
FERC so rules can apply to the June 2026 Base Residual Auction for the
2028–2029 delivery year.
• Who did it: PJM Interconnection, through its Board of Managers chaired
by David E. Mills, with support from President and CEO Manu Asthana.
• Why they did it: PJM’s 2025 long‑term forecast shows 32 GW of peak
load growth from 2024 to 2030, about 30 GW of which is from data centers. Tight
supply‑demand conditions and record capacity prices prompted a fast‑track
solution.
• Stakeholder views:
• David E. Mills, Chair, PJM Board of Managers, PJM Interconnection:
“This onrush of demand has created significant upward pricing pressure and has
raised future resource adequacy concerns… while demand expansion is clearly
evident, there exists a large cone of uncertainty around the trajectory and
amplitude of future growth.”
• Manu Asthana, President and CEO, PJM Interconnection: “The economic
growth that we are seeing in our footprint is exciting, and at the same time we
need to make sure that we can preserve system reliability for the average
consumer as this demand is added to the system.”
• What happens next: PJM will host a workshop on August 18 to present an
initial proposal and receive feedback. The scope includes resource adequacy
tools, reliability trigger criteria, potential interconnection rule changes,
coordination with states and utilities, and timing so any changes apply to the
2028–2029 auction. PJM also cites progress under queue reforms: over 140,000 MW
processed, 46,000 MW with signed agreements, and 11,000 MW to be advanced
through its Reliability Resource Initiative, while many projects still face
siting, permitting, and supply chain hurdles.
Utility Dive, “PJM launches fast‑track push to set rules for
adding data centers,” Aug. 12, 2025
PJM Inside Lines, “PJM Board Fast‑Tracks Effort To Reliably Serve
Large Loads,” Aug. 12, 2025
PJM Board of Managers, “Letter re: Implementation of Critical
Issue Fast Path Process for Large Load Additions,” Aug. 8, 2025 (PDF)
What’s the So What?
Order 2023’s tools are working as intended. Clustering and
accountability are lifting throughput and pushing out non‑viable projects,
which reduces study congestion and increases the share of bankable
interconnection agreements. Results are not uniform, but the national picture
is improving.
PJM’s action highlights the other half of the equation. With
roughly 30 GW of data center load expected by 2030, PJM is signaling that large‑load
interconnection needs explicit reliability measures. Expect proposals that
condition very large load additions on capacity backing, structured demand
response, or contract‑backed new supply, with clear triggers for when such
measures apply and when they sunset. The accelerated timeline reflects the need
to influence the June 2026 auction and maintain reliability through the
2028–2029 delivery year.
For developers and large‑load customers, the path forward is
maturity and reciprocity. Interconnection sponsors need credible schedules,
permits, and equipment plans to convert queue positions into agreements. Very
large loads should be prepared to bring solutions that support resource
adequacy if they want speed and predictability.
Bibliography
Wood Mackenzie. “5 key questions about US grid interconnection
answered.” Aug. 13, 2025. https://www.woodmac.com/news/opinion/5-key-questions-about-us-grid-interconnection-answered/
Utility Dive. “PJM launches fast‑track push to set rules for
adding data centers.” Aug. 12, 2025. https://www.utilitydive.com/news/pjm-cifp-fast-track-data-center-large-load/757399/
PJM Inside Lines. “PJM Board Fast‑Tracks Effort To Reliably
Serve Large Loads.” Aug. 12, 2025. https://insidelines.pjm.com/pjm-board-fast-tracks-effort-to-reliably-serve-large-loads/
PJM Interconnection Board of Managers. “Letter:
Implementation of Critical Issue Fast Path Process for Large Load Additions.”
Aug. 8, 2025. https://www.pjm.com/-/media/DotCom/about-pjm/who-we-are/public-disclosures/2025/20250808-pjm-board-letter-re-implementation-of-critical-issue-fast-path-process-for-large-load-additions.pdf