Biggest US grid operator to begin processing new power plant projects

• PJM had frozen new applications in 2022 to process backlogs and implement reforms, processing 170 gigawatts by end of 2025 with 31% offered or signed connection agreements
• The 800+ new applications include 349 battery storage projects, 157 natural gas plants, 142 solar farms, 65 wind farms, and 45 nuclear energy projects
• Clean energy advocates welcome the queue reopening but emphasize the need for faster project connections to meet growing electricity demand

Summary: PJM Interconnection Resumes Power Plant Application Processing

Key Development:

PJM Interconnection, the largest U.S. power grid operator serving 13 Midwest and Mid-Atlantic states (approximately one in five Americans), announced Wednesday it will begin processing new power plant applications after clearing a years-long backlog. The operator had frozen new applications in 2022 due to overwhelming demand.

Application Breakdown:

PJM received over 800 new generation project applications representing approximately 220 gigawatts of capacity. Project types include:

• Battery storage: 349 projects
• Natural gas plants: 157 projects
• Solar farms: 142 projects
• Wind farms: 65 projects
• Solar-storage hybrids: 45 projects
• Nuclear: 45 projects
• Hydropower: 11 projects

Backlog Processing:

By end of 2025, PJM processed 170 gigawatts worth of projects—enough to power roughly 130 million homes. Of these, 31% either received offers or signed interconnection agreements.

Market Context:

The grid operator faces electricity shortfalls driven by surging power demand from data centers, which has outpaced new supply additions. Interim President and CEO David Mills emphasized the need for diverse generation sources, stating "we need all the generation we can get."

Industry Response:

Clean energy advocates welcomed the queue reopening. Jon Gordon of Advanced Energy United expressed optimism but emphasized the need for faster project review and connection processes going forward.

Implications:

The reopening signals critical infrastructure expansion to meet growing electricity demand, particularly from data centers. The diverse project mix suggests a multi-faceted approach to addressing supply constraints, with significant emphasis on renewable energy and battery storage alongside traditional generation sources.