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Interconnection queue reform

Interconnection queue reform changes how grid operators study and approve new generation or storage projects seeking grid connection. Instead of processing projects one by one under a serial, first-come, first-served queue, projects are grouped into study cycles and assessed together based on network impact, readiness, site control, technical completeness and financial commitments. This helps system operators focus engineering resources on projects that are more likely to proceed, while reducing the risk that speculative or incomplete projects occupy queue capacity and delay more viable resources.  

The model typically introduces defined application windows, validation phases, phased impact studies and decision points where developers must either post additional security, meet readiness requirements or withdraw before costs and commitments escalate. By moving toward a first-ready, first-served approach, interconnection reform can improve queue discipline, shorten review timelines, increase transparency for developers and support faster integration of new resources needed for reliability, electrification and renewable growth.  

Main Outcomes of the Solution 

  • Reliability & Flexibility: Accelerates connection of generation and storage resources needed to meet demand growth, improve resource adequacy and support changing system needs. 
  • Affordability: Reduces time and cost spent studying speculative or less-ready projects, while improving visibility on network upgrade needs and cost allocation. 
  • Institutional Efficiency & Transparency: Creates clearer queue rules, readiness requirements, study phases and developer decision points, improving predictability for system operators, regulators and project developers. 

Key Deployment and Scaling Factors 

  1. Clustered study process that groups projects into defined application cycles rather than processing each project individually. 
  2. Readiness requirements covering site control, technical data, deposits and other evidence that projects are capable of advancing. 
  3. Phased study design, including early system-impact screening, detailed impact analysis and facilities-level assessment. 
  4. Digital tools and standardized application review processes to manage high volumes of interconnection data and reduce manual review bottlenecks. 
  5. Clear rules for withdrawal, restudies and network-upgrade cost allocation to reduce late-stage uncertainty for developers and system operators. 

Case study 

PJM Interconnection (2026), United States 

PJM’s first full reformed interconnection queue cycle demonstrates a cluster-based, first-ready, first-served model for processing new generation and storage projects. The reform replaces PJM’s earlier serial, first-come, first-served queue approach with a clustered cycle process designed to screen project readiness earlier and prevent less-viable projects from clogging the queue. 

The validation phase confirms whether applicants have submitted required technical and financial information, including site control and readiness commitments, before qualified projects move into clustered system-impact studies. In April 2026, PJM announced that 811 new generation projects, representing around 220 GW of capacity, had applied to connect through the first cycle of its reformed process. PJM described this as the first major intake under a redesigned approach focused on improving the certainty, speed and discipline of project review. PJM’s Cycle 1 applications include a diverse mix of resources, including storage, gas, nuclear, solar, wind, hybrid, hydro and other projects.  

The case shows how interconnection queue reform can create a more structured pathway for new resources to connect to the grid. PJM expects projects in the cycle to be reviewed through a multi-stage process, with phased studies and decision points running into 2028. The reform is particularly relevant as PJM faces rising demand from data centers, advanced manufacturing and electrification, making timely interconnection of new supply critical for reliability. 


References:  

  1. PJM’s First Reformed Queue Cycle Draws 811 Projects, 220 GW 
  2. FERC Conditionally Accepts PJM Interconnection Reforms for a First-Ready, First-Served Clustered Cycle Approach | Washington Energy Report 


Category
Business Strategies & Market Solutions
Sub-category
Market & Regulatory Solutions
Outcomes
Reliability & Flexibility, Affordability, Institutional Efficiency & Transparency
Case Study Regions
North America
Case Study Countries
USA

Future of Power Systems

A World Economic Forum Initiative