The Federal Energy Regulatory Commission recently accepted the PJM Interconnection's proposed Expedited Interconnection Track (EIT), a temporary, standalone process to quickly advance projects of significant size to address the urgent need for more capacity resources.
Through the EIT, PJM would consider up to 10 interconnection requests per calendar year for large new or uprated capacity resources that, among other requirements, have a commitment from a relevant state authority to help expedite siting.
PJM expects the projects to be able to execute a Generation Interconnection Agreement within 10 months of submission and be operational within three years. Proposals would be required to provide a minimum 250 MW unforced capacity and would be accepted on a rolling basis until the limit was reached for that year.
“The electrical grid needs new generation as quickly as possible to keep up with the electricity demand. FERC’s approval of PJM’s Expedited Interconnection Track creates an important pathway for bringing qualified, shovel-ready generation projects of any kind to connect onto the grid within the next three years,” PJM President and CEO David Mills said Wednesday.
“PJM is taking action to accelerate the interconnection process, and this approval is another important step forward,” Mills said. “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. Meeting the region’s growing electricity needs requires close coordination with the states to fulfill our shared obligations, and this approval helps make that possible.”
FERC’s order is effective July 31. The EIT process would sunset at the end of 2027.
The order said in part, “We find that 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. Furthermore, we find that the eligibility requirements are tailored to addressing near-term resource adequacy needs and appropriately limit EIT to capacity resources that are more likely to timely contribute to meeting the region’s needs.”
Commissioner David Rosner issued a concurrence, saying, “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. We depend on PJM states, load-serving entities, and developers to take the financing, procurement, permitting, and construction steps needed to turn PJM market signals into steel in the ground.”
The EIT is one part of a multi-pronged approach to address imbalance in the supply and demand of electricity in the PJM region resulting from significant increases in electricity demand from “large-load” customers, particularly data centers, PJM said.
The various elements were outlined in a Jan. 16 letter from the PJM Board of Managers implementing a Critical Issues Fast Path process addressing the challenges associated with connecting large loads.
Other initiatives, which are being actively worked with stakeholders, include:
• A connect-and-manage framework that would allow for new large loads that don’t bring their own generation to connect to the grid subject to possible curtailment under specific emergency situations
• Long-term load forecast improvements
• Development of a backstop procurement mechanism to help mitigate a shortfall in capacity, including a supplemental “backstop auction” in September.
• A holistic review of the current wholesale and capacity market design
PJM said it has also taken a number of other actions to speed the interconnection of new capacity, including but not limited to:
• Reforming the interconnection process and clearing existing the previous backlog. All generation projects seeking to connect with the PJM system are currently being studied with a one- to two-year turnaround, with faster options for shovel-ready projects.
• Successfully completing the first transition cycle under PJM’s reformed interconnection process consistent with PJM’s Tariff-based schedule, resulting in 14.1 GW of energy under signed agreements.
• Working at all times to further streamline and shorten the process for connecting new generation resources, including a groundbreaking collaboration with Google and Tapestry to leverage AI to reduce processing times.
• Attracting approximately 8,000 MW of generation among 41 projects through a one-time Reliability Resource Initiative. Those projects are scheduled for final agreement at the beginning of 2027.
• Attracting applications for 220 GW of generation in the current Cycle 1 process
• Securing FERC approval for changes to rules on:
- Transfer of Capacity Interconnection Rights (CIRs), speeding up and simplifying the transfer of CIRs from retiring generators to the resources replacing them at the same site
- Surplus Interconnection Service, streamlining the process for utilizing the unused portion of interconnection service at a facility that does not operate continuously (i.e. solar generator at night).
- Provisional Interconnection Service: Allows generators to begin operating and injecting energy into the grid before required network upgrades are completed, under certain conditions.
