On November 29, 2022, the Federal Energy Regulatory Commission (FERC) approved PJM Interconnection’s plan to move to a “first-ready, first-served” interconnection review process that groups proposals and assigns upgrade costs in clusters.[1] According to PJM, the largest grid operator in the U.S., the plan is a response to the huge influx of interconnection requests over the last few years within its footprint. The grid operator had 2,700 projects in its interconnection queue, representing more than 250 GW. The proposed reforms aim to speed up the interconnection process by allowing projects that are more ready to be processed before other more speculative projects. Speculative projects that withdraw late in the review process can create delays, creating a need to redo the review process. PJM’s plan was widely supported in an 18-month stakeholder development process.

In its decision, FERC said the reforms should provide PJM the ability to reduce its interconnection backlog more quickly than possible under its current rules and will speed the review of new interconnection requests. Under the new plan, PJM won’t review new interconnection requests until early 2026 while it addresses its pending backlog of interconnection requests. The plan also includes a transition phase that will prioritize about half the pending projects, including a “fast-lane” process for projects to help clear the existing backlog. PJM expects to start the transition phase in early 2023.

[1] https://insidelines.pjm.com/ferc-approves-interconnection-process-reform-plan/