Renewable projects are stuck waiting 5 to 10 years to connect to the grid. Over 2,600 GW of proposed generation sits in US interconnection queues, most of it renewable. This guide covers why queues have exploded, what is being done, and what it means for climate targets.
Scale of the queue
What the interconnection queue is
To connect a new generation project to the grid, developer files interconnection request with regional grid operator or utility. Studies determine required grid upgrades and cost allocation. Once complete, developer signs interconnection agreement and receives interconnection service. Queue is the backlog of pending studies.
Who manages queues
| Region | Queue manager |
|---|---|
| PJM Interconnection | Mid Atlantic and Midwest |
| MISO | Midwest |
| SPP | Central states |
| ERCOT | Texas |
| CAISO | California |
| NYISO | New York |
| ISO New England | Northeast |
| Non ISO utility service territories | Individual utility processes |
Why queues exploded
- Renewable cost competitiveness surge post 2020.
- IRA passage 2022 accelerated project proposals.
- Storage economics improving.
- Coal retirement accelerating replacement need.
- Corporate PPA demand growing.
- Speculative development ("optionality" applications).
- Transmission constraints in high resource areas.
Typical current timeline
| Stage | Approximate duration |
|---|---|
| Feasibility study | 6 to 12 months |
| System impact study | 12 to 24 months |
| Facilities study | 6 to 18 months |
| Interconnection agreement | 6 to 12 months |
| Transmission upgrade construction | 2 to 5 years |
| Total from application to service | 5 to 10 years |
Reform efforts
FERC Order 2023
FERC Order 2023 (July 2023) requires cluster study approach instead of serial one at a time. Firm deadlines. Cost caps. Withdrawal penalties. Should reduce delay by 40 to 60 percent when fully implemented.
FERC Order 2023-A
Amended reforms addressing implementation issues. Ongoing rulemaking as first cluster studies proceed.
Regional reforms
MISO, PJM, CAISO, and others implementing FERC Order 2023 with regional variations. First cluster studies now underway.
The cluster study approach
Instead of studying projects sequentially, group projects into clusters. Study cluster impact together. Allocate transmission upgrade costs across cluster. Once cluster study completes, projects can execute agreements much faster. Should reduce total queue time significantly.
The transmission problem
Queue withdrawals
Many queued projects never build. Speculative applications withdraw when interconnection cost estimates come in high. Some clusters see 30 to 50 percent withdrawal rates. This makes signal noisy on actual demand.
Getting projects built
Projects that clear interconnection then face permitting, siting, financing, and construction. Even without queue delays, project completion timeline is 4 to 7 years. Queue reform accelerates ready projects but does not fix the entire pipeline.
Storage queue growth
Standalone battery storage is fastest growing queue segment. Post IRA storage tax credits made standalone economic. Storage now over 30 percent of some queues.
Cost allocation
Transmission upgrades required by interconnection have historically been paid by the interconnecting project. This can put multi hundred million dollar burden on a single project. FERC allowing more upgrade cost sharing across projects and network beneficiaries.
Global context
UK grid queue 12+ years to connect. National Grid ESO reforming queue management. EU member states similar problems. China less transparent but managed. Australia REZ programme addresses at regional scale.
AI and data centre load
Rapid data centre load growth adds interconnection demand from both generation and load sides. Compounds queue pressure. Big Tech is increasingly investing in new transmission and generation directly.
Where interconnection is going
- Cluster studies proceeding at all major RTOs.
- Wait times expected to decline 30 to 50 percent by 2027.
- Transmission remains major constraint.
- Regional transmission planning reform.
- Growing role for private transmission developers.
- Big Tech direct investment in generation and transmission.
- Federal permitting reform continued attempts.
Climate implications
Frequently asked questions
How big is the queue?
About 2,600 GW in US alone.
How long do projects wait?
5 to 10 years currently.
What is being done?
FERC Order 2023 cluster study reform.
Is UK better?
No, worse. 12+ years typical.
Why do projects withdraw?
Interconnection cost too high, project uneconomic.
Is transmission the deeper problem?
Yes largely.
Do data centres compete?
Yes for grid capacity.
Will renewables slow?
Likely if queue reform inadequate.
What about storage?
Standalone storage huge share of queue.
Where can I read more?
FERC orders, RTO websites, LBNL queue reports.
Summary
Grid interconnection queues have exploded due to renewable and storage cost competitiveness and IRA acceleration. Over 2,600 GW waiting in US queues alone. FERC Order 2023 requires cluster study reform. Transmission buildout remains deeper problem. Wait times should decline 30 to 50 percent by 2027 with reforms fully implemented. Even with reform, transmission planning limits how fast renewables can scale. Arguably biggest single obstacle to climate targets.
Next reading
- Electric power transmission explained
- How the electric grid works
- Renewable energy complete guide
- Browse the UtilityRadar directory
See the assets in this article
Explore 177,000+ utility infrastructure sites
Locations, capacity, operators, and permits across 24 sectors: the same records our writers pull from.
Start browsingOperations guides from the UtilityRadar team.