PJM Interconnection’s proposal to enhance grid access through previously underused interconnection capacity has garnered broad support, heralding a potential game-changer for regional power supply. The proposal aims to unlock over 26 GW of accredited capacity by the 2026/2027 delivery year, a significant stride towards addressing longstanding issues within the Surplus Interconnection Service (SIS) framework. On December 20, PJM proposed foundational changes to its SIS rules, intended to facilitate the integration of substantial storage capacity from PJM’s queue, ultimately expediting the clearance of backlogs and bolstering resource adequacy in the process. By permitting service requests earlier in project development and alleviating previous limitations, the proposal significantly streamlines the interconnection process, cutting projected timelines by more than half. These changes are seen as a remedy to the challenges previously faced by developers seeking to optimize the use of available interconnection capacity, especially beneficial for pairing battery storage with intermittent resources. The region’s potential for enhanced power supply from this proposal could fundamentally reshape energy distribution, offering a robust solution to capacity shortfalls and reinforcing grid resilience.
Strategic Support for PJM’s Proposal and Its Potential Impact
The proposal’s acceptance by the Federal Energy Regulatory Commission (FERC) by March 7 is crucial, ahead of PJM’s capacity auction for the 2026/27 delivery year. If approved, it would lead to significant enhancements in capacity within transmission-constrained areas, potentially lowering capacity prices. This initiative has attracted support from various organizations, including the Maryland Office of People’s Counsel, the Sierra Club, Appalachian Voices, RMI, Natural Resources Defense Council, and the Sustainable FERC Project. These stakeholders view the SIS amendments as a rapid, cost-effective method of adding new generation capabilities, ensuring resource adequacy, and streamlining the project’s developmental phases. Emphasizing the proposal’s potential to substantially address upcoming capacity shortfalls, the widespread backing underscores its significance in meeting the region’s growing energy demands efficiently. Furthermore, Middle River Power has pointed to success stories in California, where similar processes were implemented to add 1-hour battery storage to natural gas-fired peaking power plants, showcasing the operational and environmental benefits of such an initiative.
Indeed, the collective support from entities such as the Organization of PJM States, Invenergy, Dominion Energy, and the Union of Concerned Scientists highlights a unified consensus. Notably, no opposition to the proposal has been recorded, further emphasizing the broad approval of these significant changes. Additionally, the proposed amendments align with certain Order 2023 interconnection reform compliance requirements and address concerns from a prior complaint lodged by EDP Renewables North America. By leveraging the untapped potential within the existing SIS framework, PJM’s proposal presents a strategic pathway to swiftly and effectively bolster regional power supply. The proposal’s comprehensive support, coupled with the proven success of similar initiatives in other regions, instills confidence in its ability to enhance grid flexibility, reduce emissions, and ultimately benefit consumers and stakeholders alike.
Enhancing Grid Resilience and Expediting Project Development
PJM Interconnection’s proposal to improve grid access by using previously underutilized interconnection capacity has gained widespread support, offering a potential breakthrough for regional power supply. The plan aims to unlock over 26 GW of accredited capacity by the 2026/2027 delivery year, addressing long-standing challenges with the Surplus Interconnection Service (SIS) framework. On December 20, PJM suggested essential changes to its SIS rules to help incorporate substantial storage capacity from PJM’s queue. This plan seeks to expedite the clearance of backlogs, ensuring resource adequacy. By allowing service requests earlier in project development and easing previous restrictions, the proposal significantly expedites the interconnection process, cutting timelines by more than half. These updates aim to resolve the difficulties developers faced in optimizing available interconnection capacity, particularly beneficial for integrating battery storage with intermittent resources. The region’s grid resilience and energy distribution could be fundamentally transformed, providing a robust solution to capacity shortfalls.