Generator interconnection has become a key challenge in expanding electricity supply in the US, with lengthy interconnection processes constraining the timely addition of new generation capacity. To assess progress in addressing this challenge, Advanced Energy United (AEU), a US trade group for clean energy companies, has released a report titled “Generator Interconnection Interim Progress Report” prepared by Grid Strategies and the Brattle Group, to assess progress by the country’s seven regional transmission operators (RTOs) and independent system operators (ISOs) since its 2024 Generator Interconnection Scorecard. The report provides a qualitative review of reforms undertaken in response to rising interconnection requests, queue backlogs, growing electricity demand and the Federal Energy Regulatory Commission’s (FERC) Order No. 2023. As these reforms are still underway, the report does not assign new grades but evaluates each region’s progress against the 2024 baseline.

The report finds that all seven grid operators have made progress over the past 18 months by adopting cluster studies, strengthening project readiness requirements, introducing automation and implementing reforms under FERC Order No. 2023 (Order 2023), which applies to all regions except Electric Reliability Council of Texas (ERCOT). Southwest Power Pool (SPP) and the California Independent System Operator (CAISO) showed the strongest progress, while the Midcontinent Independent System Operator (MISO) made incomplete progress. ERCOT made incremental progress, whereas PJM Interconnection, ISO-New England (ISO-NE) and the New York Independent System Operator (NYISO) made expected progress. The report notes that gating policies are improving queue quality by advancing more viable projects, although their overall effectiveness remains uncertain. It also highlights that fast-track interconnection programmes may undermine open access by favouring utility-affiliated and fossil fuel-based resources. While automation, SPP’s Consolidated Planning Process (CPP) and entry-fee policies have improved study efficiency, there is no evidence that interconnection requests are being processed faster. Equipment shortages, network upgrade delays, permitting challenges and limited transmission capacity continue to hinder project delivery.

The report identifies five priority reforms to further improve the efficiency and speed of generator interconnections:

  • Introduce entry fees for projects connecting to pre-planned transmission capacity to reduce cost uncertainty and improve transmission development efficiency.
  • Strengthen generator replacement and surplus interconnection processes to make better use of existing system capacity.
  • Adopt the most cost-effective solutions for resolving transmission reliability violations.
  • Increase the use of automation to accelerate interconnection studies while ensuring transparency, consistency and confidence in the results.
  • Improve reporting on transmission construction progress after generator interconnection agreements have been executed.

The report concludes that while implementation of FERC Order No. 2023 has established a stronger foundation for generator interconnection reforms, continued improvements will be required to create a faster, more predictable and efficient process for connecting new generation resources to the US grid.

Access the report here