PJM Floats Rule Changes to Speed Surplus Interconnection
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- PJM received 8 surplus interconnection applications since 2023 and approved just 2, per a late November presentation — a stark contrast to MISO studying 14.8 GW of such requests and SPP 14.3 GW as of June 30.
- PJM staff floated allowing hybrid resources to participate in PJM's energy and ancillary services markets as separate, independent resources, addressing a rule change that MN8 Energy's Grant Glazer said currently blocks co-located batteries from accessing needed capacity interconnection rights.
- PJM failed to meet reserve margin targets in its last two capacity auctions, with shortfalls growing to approximately 6.8 GW for the 2028/29 delivery year, up from 6.5 GW for 2027/28.
- UC Berkeley researchers found PJM thermal and renewable facilities hold surplus capacity interconnection rights that could support roughly 150 GW of new solar, wind, and storage, though federal tax credit losses have reduced that potential.
- Advanced Energy United backs the reforms as "relatively easy" to implement, with senior director Jon Gordon citing PJM's desperate need for new resources and expressing optimism the fixes will move quickly.
- Indiana and Virginia passed laws this year directing in-state utilities to study surplus interconnection potential on their systems, adding state-level momentum to the grid-expansion pathway.
- PacifiCorp was reviewing 33 surplus interconnection projects totaling 5.2 GW across five Western states as of August 13 and has filed five surplus interconnection agreements with FERC in the past 60 days.
Why it matters: PJM's capacity auction shortfalls are growing — 6.8 GW for 2028/29, up from 6.5 GW — yet the grid operator has approved just 2 of 8 surplus interconnection applications since 2023. If the hybrid-resource rule change clears, developers could finally tap the ~150 GW of unused interconnection capacity on existing PJM facilities to add storage without costly network upgrades.
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