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Posted 3 years ago | 3 minute read
PJM proposes “first-ready, first-served” interconnection review process
PJM Interconnection has set out proposals to overhaul its interconnection study process by moving to a “first-ready, first-served” clustered approach.
According to a Federal Energy Regulatory Commission filing published on 14 June, the proposal aims to clear out a backlog of pending interconnection requests, in part by using an expedited process for projects that require zero or minimal grid upgrades. The proposed change would also move from a serial queue process to a clustered cycle process for both studies and cost allocation. PJM also proposed new requirements, such as “readiness deposits,” to set aside more speculative projects. In contrast, PJM’s current interconnection queue process provides little incentive for speculative projects to exit the queue.
According to the filing the volume of new service requests has increased drastically over the past four years, with the number of 2018 requests representing a 25% increase over the 2017 amount, the number of 2019 requests representing a 50% increase over the 2018 amount, the number of 2020 requests more than double the 2018 amount, and the number of 2021 requests almost triple the 2018 amount. These increases have caused both the number of queued projects actively under study and the number of projects with backlogged studies to grow.
PJM new service requests by year
Source: FERC
“The proposed reforms will allow for significant improvements in the timely processing of existing interconnection requests as well as of new service requests […] and will more effectively clear the existing interconnection study backlog which will enable PJM to support federal and state public policy (including various renewable and clean energy initiatives),” the grid operator said.
If approved, the grid operator expects to review interconnection applications filed after October 1, 2021, starting in early 2026. PJM asked FERC to approve the proposal by October 3.
GridBeyond SVP North America Wayne Muncaster said:
“In its application to FERC, PJM said it had more than 250GW in its interconnection queue, as of May 10. Like other grid operators, PJM has seen a surge of smaller distributed renewable energy and energy storage projects seeking to connect to the grid. This has led to delays in a process that was largely designed for reviewing requests from large conventional power plants.
“As typically, project developers cannot secure finance until they have obtained an interconnection agreement the process has also resulting in projects being withdrawn, making system planning less certain for the grid operator. The proposals should help speed up the connection process for shovel ready projects, while providing incentives for the early exit of projects that are not ready (financially or otherwise) and performing studies on a cycle-wide basis will greatly reduce the number of late-stage withdrawals.”
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