(The Center Square) – While energy policy debates continue in Harrisburg, with some lawmakers prioritizing a push toward clean energy, PJM’s latest interconnection queue shows a diverse mix of resources lining up to connect to the grid – with natural gas leading in proposed capacity.
PJM recently announced that 811 new generation projects want to connect to the grid through the first cycle of its reformed interconnection process. In total, the projects represent 220 GW of proposed nameplate capacity.
This marks the first major intake under the grid operator’s redesigned project-review approach.
“PJM and our stakeholders have created a process that gets as many projects approved as quickly and safely as possible,” said Interim President and CEO David Mills. “These numbers represent significant interest from developers resulting from strong market signals, and our reformed process is designed to prioritize viable projects that can move to construction and operations with greater speed and certainty.”
The reformed process replaces its prior first-come, first-served model with a first-ready, first-served approach, prioritizing projects that are more advanced and better positioned to move forward.
Projects must demonstrate they are viable before entering the queue, including meaningful up-front financial commitments and proof of site control. The requirements are designed to reduce speculative projects, improve predictability and increase the overall pace of interconnection.
Storage had the largest number of projects, with 349 totaling 66.5 GW of capacity, but the 157 natural gas projects accounted for the largest potential capacity at 105.8 GW.
Nuclear ranked third in capacity at 17.9 GW, followed by solar at 14.8 GW, solar-storage hybrids at 8.9 GW, wind at 4.7 GW, “other” at 0.5 GW, and hydro at 0.15 GW.
Electricity demand is expected to increase by more than 30 GW between 2024 and 2030 – driven largely by data centers. With demand outpacing supply, timely interconnection of new resources is critical to keeping the lights on for the 67 million people in 13 states and the District of Columbia in the PJM region, said the grid operator.
The market signal from PJM’s latest queue highlights a gap between policy goals and grid reality.
While Gov. Josh Shapiro’s Lightning Plan would steer the commonwealth toward a larger share of clean energy by 2035, the latest queue shows natural gas accounting for the largest block of proposed new capacity – underscoring the question of whether the resources policymakers are prioritizing can meet demand quickly enough.
Todd Snitchler, president and CEO of the Electric Power Supply Association, or EPSA, told The Center Square, “The PJM queue announcement signals that resources of all types submitted into the process because they see value in doing so. The increase in natural gas projects reflects a growing belief that in the near term, natural gas fired generation can deliver the type of reliable power that large loads need and can also integrate well with other technologies – making it the technology best suited to deliver sooner and with the right performance characteristics the customer demands and the system needs.”
Snitchler added that the grid already has supply available and can deliver more power now, except during limited peak demand periods. Those periods, he said, can be successfully managed while new resources come online as needed.
PJM is using advanced tools and pathways to improve efficiency at scale, but notes that the listed figures represent maximum potential output. Based on historical performance, only a percentage of projects that apply for interconnection ultimately sign agreements, and project details remain confidential until applications are officially accepted.
Since 2020, PJM has processed more than 300 GW of projects, resulting in 103 GW worth with signed interconnection agreements. Many of these projects, however, are either not being built at all or are being slowed by hurdles such as state permitting and supply chain backlogs.
It says it’s working with public and private sector stakeholders to help approved projects move toward construction, while also managing the reliable integration of data centers as new generation is developed. The reformed process is designed to take one or two years, depending on each project’s impact.
“We are encouraged by the diversity of generation types that are seeking to join the PJM generation fleet,” said Mills. “That includes first-time innovative technologies such as small nuclear reactors and fusion, more storage projects than any other technology, a resurgence in natural gas and continued strong participation by renewables and hybrids. This is good news because we need all the generation we can get.”
