PJM Plan to Solve Capacity
January 27, 2025
March 7, 2025, could be a day to remember in PJM. It is the day that PJM has asked FERC to approve a plan to expedite the approval process for capacity in the largest ISO.
In PJM, Surplus Interconnection Service (SIS) is a fast-track approval process to unlock and add capacity, allowing projects that don’t trigger transmissions system upgrades to receive expedited review and approval. SIS projects are reviewed outside of the interconnection queue. PJM has earlier announced that it will review projects of 230,000 MW from 2025 to 2027.
Clogged interconnection queues are a significant problem for developers to bring new projects online. Revisions to SIS rule could free up 26 GW for a July capacity auction. Only about 2 GW of new capacity came online in 2024, down from 5 GW in 2023.
SIS allows a new resource to use any unused portion of an existing generating facility’s interconnection service providing the total amount of the interconnection service at the point of interconnection remains the same. Battery storage, for example, could be paired with intermittent resources to better utilize interconnection capacity.
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