Dive Brief:
- The Federal Energy Regulatory Commission on Tuesday approved the PJM Interconnection’s proposal for an “expedited interconnection track” for large generating projects, rejecting concerns raised by Vistra, state regulators and others.
- Under the process, PJM will consider up to 10 interconnection requests a year on a fast-track basis for new or uprated capacity resources of at least 250 MW that can come online within three years. The process is set to expire at the end of 2027.
- “The EIT proposal will help address PJM’s near-term resource adequacy needs by establishing a separate, time-limited, expedited interconnection process for a limited number of resources that are able to bring significant capacity onto the system in the near-term,” FERC said.
Dive Insight:
The fast-track interconnection plan is part of a series of efforts by PJM to bring more generation online quickly to meet what it says is a tightening power supply situation as growing data center demand is outstripping available electricity supplies.
To be eligible, projects must be backed by a pledge from a state’s “primary siting authority” that it supports expediting the project so it can come online within three years. A state’s governor can be considered a primary siting authority under the plan.
PJM expects it will take about 10 months between the filing of an expedited interconnection request and issuing a generation interconnection agreement.
PJM’s plan faced significant challenges at FERC, with protests filed by clean energy trade groups, the Illinois Commerce Commission, LS Power, the New Jersey Bureau of Public Utilities, Vistra, community organizations and others.
In its decision, FERC rejected Vistra’s concerns that proposed “readiness” requirements would discriminate in favor of load-serving entities, such as utilities.
“The requirements we accept here are designed to attract ‘shovel-ready’ projects that have the highest probability of successfully proceeding through this limited interconnection process, regardless of whether they are proposed by an independent power producer or affiliated with an LSE,” FERC said.
FERC also dismissed as "speculative" concerns that the expedited process could delay PJM’s regular interconnection review process and that the expedited projects will take up headroom on the grid, leaving other interconnection customers with higher network upgrade costs.
In a concurring statement, FERC Commissioner David Rosner said state efforts are required to build generation.
“Given states’ siting authority over generation and transmission, public utility commissioners, governors’ offices, and state legislatures are all necessary partners in ensuring that energy infrastructure is built at the pace needed to stay ahead of demand and keep energy affordable and reliable for PJM customers,” Rosner said.
PJM could announce the first 10 projects selected through the expedited process in October, two months before it conducts its base capacity auction for the 2029/30 delivery year, ClearView Energy Partners said in a note on Wednesday.
FERC’s approval of PJM’s expedited interconnection track creates a pathway for bringing shovel-ready generation projects “of any kind” onto the grid quickly, according to David Mills, PJM president and CEO.
“PJM is taking action to accelerate the interconnection process, and this approval is another important step forward,” Mills said in a statement. “The expedited interconnection track also creates a clear opportunity for states to advance projects that are critical to reliability and economic growth by supporting them through the siting, permitting, and development process.”
This story was updated with a comment from David Mills, PJM president and CEO.
