Grid interconnection queue
How it works
An applicant files an interconnection request and takes a position in the queue. The operator runs successive studies: feasibility, system impact and facilities studies, which determine the required network upgrades and their costs. On that basis an interconnection agreement (IA) is signed and capacity is reserved. In the serial "first-come, first-served" model projects are studied one at a time in order of submission, which creates backlogs when requests surge. Reforms (e.g. FERC Order 2023, and earlier PJM approved by FERC in November 2022) introduce cluster studies and a "first-ready, first-served" approach: projects are studied in groups and upgrade costs are shared across cluster members, aiming to shorten queues and screen out projects that are not ready.
Problem solved
Grid connection capacity is limited, and far more projects (renewables, storage, data centers) want to connect than the grid can accept without upgrades. The queue orders access, assigns the cost of required network upgrades and reserves capacity, preventing uncoordinated connections that would threaten system stability.
Components
A formal application to connect a project, which establishes a queue position and triggers the study process.
A series of analyses (feasibility, system impact, facilities) that determine the required network upgrades and their costs.
Allocation and reservation of transmission/connection capacity for a project, typically after an interconnection agreement is signed.
The entity managing the transmission or distribution grid that runs the queue and studies and executes interconnection agreements.
A shift from the serial "first-come, first-served" model to cluster studies and a "first-ready, first-served" approach (e.g. FERC Order 2023).
Evolution
Established pro-forma interconnection procedures (including NRIS and ERIS) under a "first-come, first-served" model.
PJM, approved by FERC in November 2022, replaced its serial process with a clustered cycle that groups projects.
Introduced mandatory cluster studies and a "first-ready, first-served" rule; published in the Federal Register in September 2023.
At the end of 2023 about 2,600 GW (2.6 TW) of capacity was in US queues; the typical project waited nearly 5 years, and only ~20% of projects (2000-2018) reached commercial operation.