Natural gas leads in the first round of power projects accepted by PJM Interconnection’s reformed interconnection process, comprising nearly half of the over 200 gigawatts of capacity qualified for study. Battery storage and solar follow natural gas, according to the grid operator.
This is a significant shift from three years ago when PJM, the largest U.S. grid operator, halted new projects to clear a backlog. At that time, solar, wind, and battery storage dominated the queue. Many of these clean energy projects were abandoned due to prolonged delays, allowing gas to gain prominence.
The current 715 projects, totaling 201.5 gigawatts, are the first under PJM’s “first-ready, first-served” system. This requires developers to show financial commitment and control of construction sites before projects undergo study.
This overhaul aims to address speculative backlogs and expedite viable projects amid rising demand, projected to grow by up to 70 gigawatts by 2038, driven by data centers, according to PJM.
Despite the new system, it’s uncertain how much capacity will be built. PJM figures show only 51 gigawatts of over 300 gigawatts studied since 2020 hold interconnection agreements, with no guarantee of construction.
While projects are delayed, electricity demand complicates efforts to replace fossil fuels with renewable sources. This has led to a resurgence of gas to meet demand, particularly from data centers. However, solar and storage still account for more projects, indicating resilience despite challenges.
PJM data shows gas at 99.8 gigawatts across 147 projects. Battery storage follows at 60 gigawatts, then nuclear at 17.3 gigawatts, solar at 11.8 gigawatts, solar-storage hybrids at 7.5 gigawatts, and wind at 3.9 gigawatts. Other categories include biomass, coal, fuel cell, fusion, and methane at just over a gigawatt, with hydro adding 0.07 gigawatts.
In terms of project numbers, storage leads with 314 proposals, ahead of gas at 147, solar at 117, wind at 61, solar-storage hybrids at 37, and nuclear at 24. Other categories include 10 projects, with five hydro projects.
“Storage projects are not paired with any specific generation unless designated as part of a hybrid resource,” said PJM spokesman Jeffrey Shields. “A battery draws electricity from the grid like any customer to charge and discharges to the grid like any generator.”
PJM’s release doesn’t specify how much of the 3.9 gigawatts of proposed wind capacity is offshore. The resource is crucial for states like Maryland and remains a target of federal scrutiny. Offshore wind projects persist despite federal challenges along the East Coast.
Under new rules, developers must demonstrate viability before study, with financial commitments and site control. Projects are reviewed in a one- to two-year process, depending on grid impact.
“PJM is encouraged by the number and quality of applications,” said Jason Connell, PJM’s vice president of planning. The reformed rules are “designed to encourage projects that will get built,” signaling developer eagerness across PJM’s territory.
PJM serves parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.
Jon Gordon of Advanced Energy United notes the queue now looks different from three years ago. “They had 2,700 projects in queue … 255 gigawatts … and 95% was clean energy—solar, wind, and battery storage,” he said.
Abe Silverman of Johns Hopkins University’s Ralph O’Connor Sustainable Energy Institute sees a “gold rush” for new gas to meet data-center demand. PJM’s interest in gas-fired resources is evident through reliability procurements, especially with offshore wind slowed by policy.
Under the reliability backstop mechanism, PJM allows select projects to bypass the queue to balance demand and supply. Silverman expects improvements but warns previous restructuring attempts have not always succeeded. Project realization depends on PJM’s studies, turbine availability, and state processes.
PJM defends the overhaul. The process has stricter requirements, with readiness deposits at risk, Shields said. The new rules should “weed out speculative projects” and ensure higher chances of realization.
Challenges like state permitting, local opposition, and supply chain backlogs remain, but PJM continues to work with stakeholders to reduce barriers, Shields added.
Original Story at insideclimatenews.org