PJM Greenlights 715 Projects Under New Queue, Adding 200 GW of Potential Capacity

PJM’s Reformed Queue Clears 715 Projects for Study, Unlocking 200 GW of Potential Capacity

PJM Interconnection has qualified 715 new generation projects for study in the first cycle of its overhauled interconnection process, with a combined nameplate capacity of more than 200 gigawatts—a mix that leans heavily on natural gas and energy storage.

The projects, submitted by the April 27 deadline, passed an initial screening that required technical documentation and financial deposits, signaling viability under PJM’s new “first-ready, first-served” approach. Storage led the count (314 projects), followed by natural gas (147), solar (117), wind (61), hybrid solar-storage (37), nuclear (24), hydro (5), and other technologies. But in terms of capacity, natural gas accounts for nearly 100 GW, or about half of the total, while storage offers 60 GW.

“PJM is encouraged at the number and quality of applications that are proceeding through the study process to help address the long-term shortage of electricity supply that we are facing,” said Jason Connell, Vice President – Planning. The grid operator expects demand to climb by up to 70 GW by 2038, driven largely by data center expansions, and has been racing to reform its processes after a massive queue backlog forced a shutdown in 2022.

The new cycle incorporates AI analysis via Google’s Tapestry tool, HyperQ, to speed application review. PJM aims to complete studies in one to two years, depending on project impacts, and will provide developers with system impact models in August and September so they can decide whether to proceed or withdraw before committing further resources.

Why PJM’s New Interconnection Process Marks a Pivot for Grid Planning and Project Viability

A New Filter for Viability

The “first-ready, first-served” model ties entry to demonstrable project readiness—upfront financial commitments and proof of site control—which should weed out speculative proposals that bogged down previous queues. While PJM notes that historically only a fraction of applied projects sign interconnection agreements and reach operation, the higher bar is designed to favor those with a real path to construction. This could shorten the gap between application and in-service dates, though material challenges such as state permitting and supply chain bottlenecks remain.

Natural Gas Dominance and the Reliability Imperative

The heavy reliance on natural gas—99.8 GW of the 201.5 GW total—reflects near-term reliability concerns. With coal retirements and renewable intermittency, grid operators are increasingly looking to gas to fill gaps, especially as large data center loads demand firm, round-the-clock power. Storage projects (60 GW) and nuclear proposals (17.3 GW) signal a push for clean alternatives, but their timelines are longer and more uncertain. The queue’s composition suggests that, despite decarbonization goals, fossil fuel generation remains the go-to option for meeting immediate supply needs in PJM’s territory.

FERC-Driven Reforms and Expedited Pathways

Beyond the queue reform, PJM is executing multiple directives from the Federal Energy Regulatory Commission (FERC) and its stakeholders. An expedited interconnection track, approved in June, will allow up to 10 projects per year with at least 250 MW of accredited capacity to bypass the standard cluster process, compressing connection timelines for large-scale resources. Meanwhile, PJM has proposed a backstop reliability procurement to start in September, aimed at securing new supply if market forces fail. These measures underscore an environment where regulatory and reliability pressures are forcing the grid operator to accelerate and simplify new entry.

The Data Center Overhang

The projected 70 GW demand increase by 2038, primarily from data centers and large-load customers, is the elephant in the room. It makes timely interconnection critical not just for reliability, but for controlling electricity costs. If supply lags, capacity market prices could spike, impacting utilities and ultimately consumers. The queue’s massive volume is a direct response to this signal, but the translation from queue positions to steel in the ground will determine whether PJM can maintain balance.

Strategic Implications for Developers, Utilities, and Large Load Customers Amid the Supply Crunch

For developers and investors:

• Secure site control and prepare financial deposits early—PJM’s screening filters out unprepared proposals, and the expedited track offers a faster path for large projects (≥250 MW).
• Monitor PJM’s summer peak model release on Aug. 28 and the winter/light load cases on Sept. 11; these system impact insights will influence whether to continue in the study process or withdraw.
• Review the FERC-approved expedited interconnection track rules and consider applying if your project meets the scale requirement, as only 10 slots per calendar year are available.

For utilities and grid planners:

• Anticipate that even with 715 projects in the queue, only a portion will reach signed interconnection agreements; plan supply portfolios with contingencies.
• Engage with PJM’s backstop reliability procurement proposal filed with FERC, which could become a direct mechanism to secure additional capacity as early as September.
• Prepare for potential load-shedding protocols under the “connect and manage” scheme being designed for large-load customers, minimizing disruption to other consumers.

For large electricity consumers, especially data centers:

• Expect new supply to materialize, but timelines remain uncertain; the expedited track may bring some large projects online within a few years, but permitting and supply chain delays persist.
• Understand that “connect and manage” rules may impose load curtailment obligations during supply shortfalls, so factor that into site selection and backup power investments.