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Reports by Abraham Silverman, Zachary A. Wendling, Kavyaa Rizal + 1 more • May 08, 2024
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The United States is witnessing rapidly growing interest in clean electricity generation, driven by soaring consumer demand for clean energy and the country’s goal to reduce greenhouse gas emissions. In parallel, the time it takes for new, clean generation projects to move from design to execution in the US has lengthened, meaning that the rising interest has not been matched by supply. The country’s largest grid operator, PJM Interconnection (PJM), has experienced the most severe delays and backlog in new generation—projects entering the queue today have little chance of coming online before 2030.
It is widely understood that an increasingly lengthy interconnection process, which involves a series of studies and upgrades grid operators must take to ensure projects can connect to the grid safely and reliably, is responsible for this state of affairs. It is not clear how this longer process interacts with other known project development challenges—such as siting and permitting issues, supply chain constraints, and inflationary pressures—and to what extent such interactions may lengthen the timeline for bringing projects online. Understanding these dynamics can help answer critical questions about grid reliability going forward, including whether it will be necessary to delay or cancel the planned retirement of aging fossil fuel-fired generation resources that the new generation is intended to replace.
This report attempts to fill this knowledge gap. It presents results of an author-developed survey of those best positioned to understand the impacts of interconnection process delays: project developers in the PJM market. The key finding from the survey is that PJM’s increasingly lengthy interconnection process is exacerbating siting and permitting challenges and leading to knock-on delays in equipment procurement and financing decisions, suggesting the timeline for new generation in this market will likely remain long for the foreseeable future. Given the importance of new entry to keeping prices competitive and maintaining reliability amid the retirement of older fossil resources, PJM will need to find ways to reduce interconnection delays or reconsider when those fossil resources should be retired.
Other notable findings include the following:
CGEP is pleased to announce a new AI & Energy series—part of our Energy Explained blog. In the first entry, the authors write about AI's potential impacts on the...
Kenya and South Africa have recently started moving toward an open access regime in their electricity sectors, while the US and India have been on this path for over two decades.
About one in four American households experience some form of energy insecurity. Within this group, Black, Indigenous, Latine, low- and moderate-income (LMI), and other disadvantaged communities face a disproportionately higher burden.
Full report
Reports by Abraham Silverman, Zachary A. Wendling, Kavyaa Rizal + 1 more • May 08, 2024