High Level
Two developments dominated interconnection policy this week.
UC Berkeley researchers said existing generators in PJM hold enough underused
interconnection service to host about 153 GW of additional solar, wind, and
storage, with a smaller economic build potential if federal tax credits phase
out. Separately, NV Energy asked FERC for a one‑time waiver to let wind and
solar developers withdraw from its interconnection process without penalties
following federal policy changes and a new Interior Department review procedure
for projects on BLM land. The common theme is near‑term reliability and queue
hygiene through surplus service and managed exits.
Full View
UC Berkeley says PJM’s surplus interconnection can host
153 GW of new solar, wind, and storage
• What happened: A Berkeley working paper summarized by Utility Dive
finds that existing PJM generators collectively have enough unused
interconnection service to accommodate about 153 GW of solar, wind, and
storage. The authors estimate the economic potential falls to about 106 GW if
clean energy tax credits lapse.
• Who did it: UC Berkeley researchers Umed Paliwal and Amol Phadke
analyzed PJM data; PJM and FERC are cited for recent Surplus Interconnection
Service reforms.
• Why they did it: To identify near‑term capacity additions that can
come online faster than new gas generation as PJM faces rising load, including
data center growth.
• Stakeholder views:
• Umed Paliwal: “We need firm capacity in the PJM grid in the next three to
four years.”
• EDP Renewables’ David Mindham: “There’s a demand for anything that can come
online in any sort of a reasonable time frame.”
• What happens next: PJM’s FERC‑approved surplus‑service pathway and
related Manual 14H updates are intended to speed projects that do not trigger
network upgrades. Developers are beginning to test the process, and alignment
with capacity injection rights remains a focus.
Sources:
Utility Dive, “PJM surplus interconnection can support 153 GW of solar, wind,
storage: UC Berkeley researchers,” Aug. 21, 2025 — https://www.utilitydive.com/news/pjm-surplus-interconnection-sis-solar-wind-storage/758121/
Utility Dive, “FERC approves PJM’s fast‑track power plant interconnection
plan,” Feb. 12, 2025 — https://www.utilitydive.com/news/ferc-pjm-fast-track-surplus-interconnection-queue/739908/
PJM Interconnection, “Manual 14H Revisions – Surplus Interconnection Service,”
Mar. 4, 2025 (PDF) — https://www.pjm.com/-/media/DotCom/committees-groups/committees/pc/2025/20250304/20250304-item-03--manual-14h---update.pdf
PJM Interconnection, “Manual 14H” current version (PDF) — https://www.pjm.com/-/media/DotCom/documents/manuals/m14h.pdf
NV Energy seeks FERC waiver to allow clean energy
projects to exit its interconnection queue without penalty
• What happened: NV Energy petitioned FERC for a one‑time, 60‑day window
to let interconnection customers withdraw or terminate agreements without
paying withdrawal penalties, with deposits returned promptly.
• Who did it: NV Energy filed the waiver request; the Solar Energy
Industries Association and the Interwest Energy Alliance filed supportive
comments.
• Why they did it: NV Energy cites the July 4 budget law phasing out
clean energy tax credits and a July 15 Interior memo requiring top‑level review
of solar and wind actions on BLM‑managed lands across Nevada.
• Stakeholder views:
• SEIA and Interwest: the waiver would “encourage now‑uncertain projects to
withdraw…without penalty and with rapid return of their commercial deposits.”
• Nevada Governor Joe Lombardo: “I am concerned the memo will prevent or
unnecessarily delay energy development in the state that is poised to help meet
the growing energy demands of the mining industry and data centers.”
• What happens next: If FERC grants the waiver, NV Energy would open a
one‑time 60‑day off‑ramp and post the window on its OASIS site, likely reducing
restudies and clarifying cost responsibility for projects that remain.
Sources:
Utility Dive, “NV Energy seeks FERC approval to give wind, solar developers
free exit from interconnection queue,” Aug. 19, 2025 — https://www.utilitydive.com/news/nv-energy-ferc-wind-solar-interconnection-queue/757994/
FERC eLibrary, “Comments of SEIA and Interwest Energy Alliance in Support of NV
Energy’s Waiver Request,” Accession No. 20250818‑5084 (PDF) — https://nevadacurrent.com/wp-content/uploads/2025/08/20250818-5084_ER25-3025-SEIA-and-Interwest-Comments-in-Support-Final-w-Attachment.pdf
FERC eLibrary, “NV Energy Petition for Limited Waiver,” Accession No. 20250728‑5179
(PDF) — https://nevadacurrent.com/wp-content/uploads/2025/08/20250728-5179-1.pdf
NV Energy OASIS notice page — https://www.oasis.oati.com/NEVP/
Las Vegas Review‑Journal, “Lombardo: Nevada solar industry is ‘frozen’ by Trump
admin memo,” Aug. 7, 2025 — https://www.reviewjournal.com/news/politics-and-government/nevada/lombardo-nevada-solar-industry-is-frozen-due-to-trump-admin-memo-3410747/
E&E News, “Interior’s restrictions have ‘frozen’ Nevada solar projects,
Republican governor tells Burgum,” Aug. 11, 2025 — https://www.eenews.net/articles/interiors-restrictions-have-frozen-nevada-solar-projects-republican-governor-tells-burgum/
What’s the So What?
The policy arc this week is about time. PJM’s surplus‑interconnection
analysis highlights a path to add capacity quickly by using interconnection
headroom at existing plants. The scale is material for near‑term reliability
planning, especially if storage can convert intermittent output into qualifying
capacity. The analysis lands just after FERC approved PJM’s expanded surplus‑service
rules and PJM aligned its manual procedures, signaling institutional support
for this “use what you already have” approach.
In Nevada, NV Energy’s request aims to triage the queue in
light of changed federal incentives and a new Interior review process for
federal lands. A penalty‑free off‑ramp would purge uncertain projects and
reduce serial restudies that create cost and timing risk for projects with real
offtake and financing. Trade groups emphasize speed and certainty from rapid
deposit returns, while the governor’s letter underscores real‑world impacts in
a state where BLM controls most land.
Taken together, the week shows regulators and utilities
converging on two complementary levers: unlock surplus capacity at existing
points of interconnection and clear stalled requests to stabilize study models.
For developers in PJM, the practical next steps are to align surplus requests
with capacity injection rights and to package hybrids so they improve effective
load‑carrying capacity under PJM rules. For Western developers, watch FERC’s
decision on NV Energy’s waiver. If granted, expect near‑term queue housekeeping
across projects most exposed to the tax credit phaseout and federal land
review.
Bibliography
Utility Dive. “PJM surplus interconnection can support 153
GW of solar, wind, storage: UC Berkeley researchers.” Aug. 21, 2025. https://www.utilitydive.com/news/pjm-surplus-interconnection-sis-solar-wind-storage/758121/
Utility Dive. “FERC approves PJM’s fast‑track power plant interconnection
plan.” Feb. 12, 2025. https://www.utilitydive.com/news/ferc-pjm-fast-track-surplus-interconnection-queue/739908/
PJM Interconnection. “Manual 14H Revisions – Surplus Interconnection Service.”
Mar. 4, 2025. https://www.pjm.com/-/media/DotCom/committees-groups/committees/pc/2025/20250304/20250304-item-03--manual-14h---update.pdf
PJM Interconnection. “Manual 14H.” Current ed. https://www.pjm.com/-/media/DotCom/documents/manuals/m14h.pdf
Utility Dive. “NV Energy seeks FERC approval to give wind, solar developers
free exit from interconnection queue.” Aug. 19, 2025. https://www.utilitydive.com/news/nv-energy-ferc-wind-solar-interconnection-queue/757994/
Federal Energy Regulatory Commission. “Comments of SEIA and Interwest Energy
Alliance in Support of NV Energy’s Waiver Request, Accession No. 20250818‑5084.”
Aug. 18, 2025. https://nevadacurrent.com/wp-content/uploads/2025/08/20250818-5084_ER25-3025-SEIA-and-Interwest-Comments-in-Support-Final-w-Attachment.pdf
Federal Energy Regulatory Commission. “NV Energy Petition for Limited Waiver,
Accession No. 20250728‑5179.” July 28, 2025. https://nevadacurrent.com/wp-content/uploads/2025/08/20250728-5179-1.pdf
Las Vegas Review‑Journal. “Lombardo: Nevada solar industry is ‘frozen’ by Trump
admin memo.” Aug. 7, 2025. https://www.reviewjournal.com/news/politics-and-government/nevada/lombardo-nevada-solar-industry-is-frozen-due-to-trump-admin-memo-3410747/
E&E News. “Interior’s restrictions have ‘frozen’ Nevada solar projects,
Republican governor tells Burgum.” Aug. 11, 2025. https://www.eenews.net/articles/interiors-restrictions-have-frozen-nevada-solar-projects-republican-governor-tells-burgum/