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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.

In Q4 2024, US utilities updating their IRPs reduced planned wind and solar capacity by 20 GW and increased planned gas capacity by 12 GW, leading to an 8 percent increase in projected emissions despite a small downward adjustment in projected load.

The policy brief advocates for 'clean repowering'—the strategy of siting new renewable energy projects at existing or retiring fossil fuel plant interconnection points—to reduce interconnection times from nearly five years to less than one year. RMI's analysis indicates this approach could enable 250 GW of new renewable energy without transmission upgrades, resulting in average national savings of $12.7 billion annually from 2025 to 2035. The brief highlights the role of the Inflation Reduction Act (IRA) and the Energy Infrastructure Reinvestment (EIR) program in making these projects financially viable and provides specific recommendations for regulators to ensure these savings reach customers through integrated resource planning and oversight.

The report identifies a 250 GW potential for 'clean repowering' in the United States, where new clean energy projects are sited at existing interconnection points to bypass interconnection delays and leverage Inflation Reduction Act (IRA) incentives. It highlights two primary pathways: 'Surplus Interconnection Service' for adding capacity to operating plants and 'Generator Replacement' for replacing retiring plants. These strategies aim to reduce interconnection timelines from years to months while supporting energy communities through tax credits and loan guarantees.

The report argues that rate-regulated utilities use 'self-commitment' to bypass market merit order, running coal plants that are objectively uneconomic and passing the resulting losses to captive customers through state fuel-cost-recovery processes. Using PLEXOS modeling for the MISO region in 2018, the authors find that this practice cost customers $350 million and suppressed regional market clearing prices by 2.4%. The report identifies Cleco and DTE Energy as significant contributors to these distortions and recommends that state regulators disallow the recovery of imprudent, above-market costs to incentivize efficient dispatch.

The research note analyzes four implementation scenarios for the DOE's Grid Resilience Notice of Proposed Rulemaking (NOPR), which would compensate coal and nuclear plants for costs not recovered in wholesale markets. The analysis finds that annual customer costs could range from $311 million to $10.6 billion, with a high concentration of benefits accruing to a small number of companies, particularly in the PJM region.

The report analyzes the Eastern Interconnection Planning Collaborative (EIPC) study to demonstrate that aggressive carbon reductions in the U.S. electric sector are achievable with minimal additional cost. By re-evaluating EIPC data, Synapse Energy Economics found that a 'Carbon Reduction' scenario—featuring massive wind build-out and coal retirements—costs approximately the same as a 'Business as Usual' scenario when carbon revenues are recycled. The analysis shows that this path would allow the MISO and PJM regions to significantly over-comply with the Clean Power Plan's emissions targets while maintaining grid reliability.

The document outlines how data centers can increase electricity demand flexibility by shifting workloads, reducing operations, or using onsite storage. It highlights that without policy changes, data center growth could lead to 25-50 GW of additional fossil generation by 2030. Conversely, curtailing just 0.5 percent of annual electricity use could allow 100 GW of load to be added nationwide without new peak resources. Proposed policy tools include tying tax incentives to demand response participation, enabling faster interconnection for flexible facilities, and implementing utility rates that align costs with system impact.

The report explores automated emissions reduction (AER), a software-based technology that modulates the electricity use of internet-connected devices based on real-time grid emissions data. Based on a pilot in Chicago and a stakeholder workshop, the report finds that AER can reduce pollution by 5–40% for specific loads and lower customer acquisition costs for utility demand response programs. It proposes five priority near-term initiatives: institutional and residential pilots, device certification, integration into GHG accounting protocols, and the creation of open-source infrastructure.