The Interconnection Queue Continues to Be a Barrier to US Economic Competitiveness

The US faces a critical bottleneck in connecting new electricity generation and storage to the grid, with over 2.2 terawatts of projects currently in queues. While the US Department of Energy has pushed for streamlined load interconnection for data centers, the author argues that this is insufficient without parallel reforms to generator interconnection. Current processes are characterized by long delays—averaging nearly five years from request to operation in 2024—and high network upgrade costs that often exceed 10% of project capex, leading to high attrition rates. The brief proposes several solutions: adopting advanced AI and automation software for studies, integrating Grid-enhancing technologies (GETs) to reduce costs, improving transparency in network upgrade construction, and implementing 'fast track' pathways such as energy-only interconnection, surplus interconnection service, and generator replacement.

• The US generator interconnection queue is severely congested, with more than 2.2 terawatts of generation and storage projects awaiting connection, which is nearly double the current installed grid capacity.
• Interconnection timelines have increased significantly; the average time from the initial request to commercial operation rose to nearly five years in 2024, compared to less than two years in 2008.
• High costs for network upgrades are a primary driver of project attrition, with developers often withdrawing from the queue when these costs exceed approximately 10% of the project's total capital expenditure.
• Only a small minority of projects that requested interconnection between 2000 and 2019 actually reached commercial operation by the end of 2024, specifically 19%.
• The use of Grid-enhancing technologies (GETs) in the PJM region could potentially allow 6.6 GW of new generation to connect more quickly, resulting in roughly $1 billion in annual production cost savings for an installation cost of $0.1 billion.
• FERC Order 2023 introduced initial reforms such as cluster studies and deadlines for studies with financial penalties, but the author contends these are insufficient to meet the needs of significant upcoming load growth.

APA

RMI (2026). The Interconnection Queue Continues to Be a Barrier to US Economic Competitiveness. https://rmi.org/resources/interconnection-reform-ai-data-centers-generator-queues/

Chicago

RMI. The Interconnection Queue Continues to Be a Barrier to US Economic Competitiveness. 2026. https://rmi.org/resources/interconnection-reform-ai-data-centers-generator-queues/.

Wikipedia

{{cite report |author=RMI |title=The Interconnection Queue Continues to Be a Barrier to US Economic Competitiveness |date=17 March 2026 |url=https://rmi.org/resources/interconnection-reform-ai-data-centers-generator-queues/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026interconnection, author = {{RMI}}, title = {{The Interconnection Queue Continues to Be a Barrier to US Economic Competitiveness}}, institution = {RMI}, year = {2026}, month = mar, url = {https://rmi.org/resources/interconnection-reform-ai-data-centers-generator-queues/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }