PJM Fast-Tracks 700+ Energy Projects into First Reformed Grid Review
Regional grid operator PJM Interconnection is advancing 715 new generation projects into the first cycle of its reformed interconnection process. This new approach, announced on Monday, marks the first study cycle of its "first-ready, first-served" streamlined interconnection framework, representing over 200 GW of electricity capacity.
According to a release, projects will be reviewed in a one-to-two year timeline with zero remaining backlog from prior queue requests. This reformed process aims to improve the predictability and safely fast-track large-scale infrastructure online as hyperscalers increasingly struggle to secure enough grid access.
Currently, PJM is facing immense pressure to secure enough generation for households, businesses and expanding data centers. This overwhelming power challenge has resulted in PJM's Board directing the filing of two regulatory proposals this month with the Federal Energy Regulatory Commission to mitigate this power demand across the 13 states and 67 million people it serves.
Energy storage leads PJM's new study cycle with 314 projects (60 GW), while solar (11.8 GW) accounts for 117 and wind generation (3.9 GW) makes up 61 of the 715 total proposals. Following the application window, which closed in April, PJM reduced the total number of proposals in its queue from 811 initial submissions.
Under this “first-ready, first-served” approach, PJM is requiring project submissions to demonstrate commercial viability before entering the study phase. This includes developers providing up-front proof of financial commitments and site control, which are processed using an AI-enabled review tool.
PJM states it's evaluating the impact of these AI review tools, developed by Google's parent company Alphabet Inc., throughout Cycle 1 as it prepares for electricity demand on its grid to increase by up to 70 GW by 2038.
“PJM is encouraged at the number and quality of applications that are proceeding through the study process to help address the long-term shortage of electricity supply that we are facing,” said Jason Connell, vice president of planning at PJM, in a statement. “The rigorous process that is now in place is designed to encourage projects that will get built.”
Among the 715 projects admitted in the study, PJM notes that 10 (1.1 GW) fall into the “other” category, which covers the designation of project focuses on biomass, fuel cells, fusion energy, coal and methane. Connell views this as a sign of the greater development to come onto PJM’s regional grid.
“The number and diversity of projects indicates that developers are eager to build in the PJM region, and we will continue to streamline our processes to meet the speed-to-power needs of the industry,” he said. “Bringing new generation online is critical to support grid reliability and control electricity costs by balancing supply and demand.”
To help enrolled developers better understand impacts as they proceed to interconnect, PJM will post its summer peak model on Aug. 28, followed by winter peak and light load cases on Sept. 11. PJM states it currently has 51 GW of generation with signed agreements, but many of these projects are either not being built at all or have encountered hurdles such as state permitting and supply chain backlogs.
PJM plans to add new projects with finalized agreements at the completion of Transition Cycle 2 in early 2027 and Cycle 1 in 2028.
