PJM's Clean Power Interconnection Progress Faces Cost and Timing Challenges

PJM Interconnection completed interconnection reviews for some renewable projects last year, but high electricity costs threaten affordability for 67 million customers.

PJM Interconnection completed interconnection reviews for a cluster of renewable projects last year, serving 67 million customers across 13 U.S. states. While a May 2024 report suggests adding 5 gigawatts of solar and 5 gigawatts of wind by 2028 could save ratepayers $10.9 billion over a decade, the path to deployment remains uncertain. Historical data shows 41% of U.S. renewable projects that secured interconnection agreements withdrew between 2000 and 2022, and utilities delay grid upgrades because they cannot include them in regulated rates. Current PJM capacity market prices are elevated due to supply constraints, creating immediate affordability risks for 67 million customers. State governors remain key actors to compel faster deployment by 2030. The source's August 24, 2026 publication date indicates a potential typo, as this is a future date. The $10.9 billion savings projection assumes specific project deployment and avoids project withdrawals, making it vulnerable to the high withdrawal rate observed historically. This signal moves electricity affordability for 67 million people but faces friction from delayed grid upgrades and project withdrawals that could undermine cost savings.

Source: Canary Media