PJM Interconnection, the largest U.S. grid operator, saw its proposed power project queue collapse by 93%.
Proposed projects fell from 424 gigawatts in 2023 to 31 gigawatts as of June 2026. This decline follows the implementation of FERC Order 2023. The federal rules require developers to meet stricter financial and site-control milestones to enter the queue. These reforms aim to remove a multi-year backlog of speculative projects that blocked viable power sources.
The queue reduction complicates efforts to meet soaring electricity demand from data centers. PJM released a new five-year strategy this week to address these interconnection challenges. The operator labeled the current state of the grid connection process as untenable. The strategy demands a more proactive role in ensuring resource adequacy. This shift occurs as the region faces significant demand growth after a decade of flat power usage.