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

The US generator interconnection process is a significant barrier to economic competitiveness, with over 2.2 TW of projects queued and average wait times increasing to nearly five years. While FERC Order 2023 introduced some improvements, the brief argues for further reforms: deploying AI and advanced software for studies, utilizing Grid-enhancing technologies (GETs) to lower costs, and implementing 'fast track' pathways for energy-only, surplus, and replacement generation. It also suggests integrating the planning of load, generation, and transmission to reduce redundant network upgrades.

• The US is experiencing a significant bottleneck in generator interconnection, with over 2.2 terawatts of generation and storage projects currently waiting in queues. This volume is nearly double the current installed capacity of the grid. The time required to move from an initial request to commercial operation has increased from under two years in 2008 to nearly five years in 2024, and only 19% of projects requesting interconnection between 2000 and 2019 had reached commercial operations by the end of 2024.
• High and uncertain interconnection costs, primarily driven by required network upgrades, are a major cause of project attrition. Projects typically withdraw from the interconnection queue when these costs exceed approximately 10% of the project's total capital expenditure.
• While FERC Order 2023 introduced reforms such as cluster studies, deadlines for studies, and measures to deter speculative requests, the document argues these are insufficient to meet the needs of significant load growth. The order primarily served to institutionalize existing best practices across different regions.
• Advanced software and AI tools can significantly accelerate interconnection study timelines by automating manual tasks. Examples include Pearl Street Technologies' software in MISO, which reduced a study phase from months to days, and Tapestry's AI tool in PJM for readiness reviews of applications.
• The adoption of Grid-enhancing technologies (GETs) as network upgrades can reduce costs and speed up interconnection. RMI analysis indicates that using GETs in PJM could allow 6.6 GW of new generation to interconnect faster, resulting in approximately $1 billion in annual production cost savings with an installation cost of $0.1 billion.
• Several 'fast track' pathways can reduce study rigor and costs for specific types of resources: Energy-only interconnection (ERIS) for non-firm resources (implemented by CAISO), surplus interconnection service for adding generation to existing plants (sanctioned by FERC Order No. 845), and generator replacement for retiring plants (used in MISO, SPP, and PJM).
• Integrating the planning of new load, generation, and transmission can improve efficiency and reduce piecemeal grid buildout. This includes co-locating generation and load to create 'hybrid resources' and adopting consolidated planning processes, such as the one proposed by Southwest Power Pool.

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} }