With the rapid expansion of data centers in the United States, PJM Interconnection, a key grid operator criticized for delays, is urgently seeking solutions to alleviate stress on electrical grids.
PJM, covering 13 states in the Northeast and Mid-Atlantic, is inviting public input on a rulemaking shortcut known as the Critical Issue Fast Path (CIFP). This measure aims to shorten the review process for grid connection applications.
The proposed measures include a fast-track interconnection queue, which would allow certain large projects to connect within months. However, experts caution this could favor gas plants, potentially increasing fossil fuel use as states strive to reduce emissions.
PJM plans to submit its proposal to the Federal Energy Regulatory Commission (FERC) in December. FERC will assess the fairness and legality of the rule change before approval.
“This is PJM’s way of saying, ‘We need a quicker process,’” said Abraham Silverman, an energy researcher at Johns Hopkins University.
The last CIFP usage was in 2023, when PJM addressed the need to keep power plants operational as older ones retired. FERC later approved PJM’s changes to advance notice and performance tests for plant owners.
In September, PJM held biweekly meetings to discuss proposals with stakeholders such as state energy officials and consumer advocates. Public participation is available here.
The PJM Board noted significant pricing pressure and uncertainty in future growth, indicating the need for rapid solutions in an August letter to stakeholders.
PJM predicts a 20% increase in electricity demand, amounting to 32 gigawatts, by 2030, while new power generation is slow to come online. The organization’s 2025 long-term forecast warned that new generators aren’t being developed quickly enough.
PJM has advocated for faster interconnection rules and launched a fast-track review for new projects. However, critics argue these efforts are inadequate.
During daylong hearings, PJM outlined proposals and received input from various stakeholders. In its latest proposal, PJM suggests an expedited interconnection process for 10 projects annually, allowing them to connect in 10 months.
Proposed So Far
PJM revises its proposal after each hearing and reconvenes every two weeks until December. In September, PJM proposed limiting data center usage during peak demand but retracted it following objections.
The new queue proposal could favor gas projects, which can meet the requirement to generate at least 500 megawatts within three years. This concerns experts who argue it excludes most renewable projects.
The proposal might conflict with climate goals in states relying on PJM, such as New Jersey and Maryland, which have passed or proposed laws for aggressive renewable energy targets.
PJM spokesperson Jeffrey Shields stated the proposal is open to all technologies and will be limited to 10 projects annually, not affecting those in the main queue. PJM also aims to address “double counting” in data center energy forecasts, which could skew projections and raise prices.
Consumer Advocates of the PJM States supports measures against double counting, emphasizing accurate measurement for effective management.
“Customers lack confidence in current forecasts,” said Jeff Dennis, executive director of the Electricity Customer Alliance.
Original Story at insideclimatenews.org