Episode Summary
Executive Summary: The episode explains why U.S. renewable projects are jammed in interconnection queues, how the current process creates years-long delays and high upgrade costs, and why that system is especially ill-suited to a rapidly changing grid. Guest Chas Teplin argues that FERC’s new reforms—batch processing, stronger screening, grid-enhancing technologies, and deadlines—are helpful but insufficient without much more proactive regional transmission planning.
Main Topics: What interconnection queues are and why they matter (Priority: 5/5): The conversation defines interconnection queues as the approval process for new generators to connect to the grid, emphasizing that they exist to protect reliability by preventing cascading failures and ensuring deliverability to load. Why the current queue process is so slow and costly (Priority: 5/5): Projects can wait three to five years for study results, then face large transmission upgrade bills that often cause dropouts, which in turn trigger more restudies and more delay. Participant funding and the transmission planning problem (Priority: 5/5): The grid often relies on the next generator in line to pay for network upgrades, a model that made more sense for flexible gas plants but now poorly fits geographically constrained wind, solar, and storage. ERCOT, MISO, PJM, and varying regional approaches (Priority: 4/5): Different regions handle queues differently: ERCOT speeds things up by putting more curtailment risk on developers; MISO has advanced cluster studies and some regional planning; PJM remains the clearest example of the problem with a huge, slow queue and little regional transmission planning. FERC Order 2023 reforms (Priority: 5/5): FERC’s order pushes first-ready, first-served cluster studies, requires consideration of grid-enhancing technologies, and adds timelines/penalties, but stops short of solving the underlying transmission shortage. Why transmission planning is the real fix (Priority: 5/5): Both speakers repeatedly stress that queue reforms alone cannot solve the problem; large-scale regional and interregional transmission buildout is essential for reliability, lower costs, and clean energy targets. Storage and hybrid projects in the queue (Priority: 3/5): Storage and hybrid resources are studied in the same queues as generators, with some flexibility to add storage without losing queue position, and they may offer a faster way to improve system performance if treated more favorably.
Key Arguments: The queue backlog is a sign of strong clean-energy demand, not lack of project interest: about 2 terawatts are waiting to connect, mostly wind, solar, and storage. The process is slow because every project is studied individually for reliability impacts and deliverability, and dropouts force expensive restudies. Current cost allocation is mismatched to the modern grid; making the next generator pay for transmission was more reasonable when gas plants could be sited flexibly, but not for today’s constrained renewables. Speculative queue entry is a rational response to uncertainty, but it worsens congestion and slows the entire system. ERCOT shows one alternative: faster queue processing by placing more curtailment and deliverability risk on developers, though that comes with tradeoffs. Batching projects into clusters and requiring more proof that projects are real should reduce restudies and improve efficiency. Grid-enhancing technologies are likely cost-effective and could squeeze more capacity from the existing system while new transmission is built. The real bottleneck is not just the queue process but the absence of proactive regional transmission planning. PJM is the clearest warning sign: a 3,000-project queue, roughly five-year processing times, and no substantial regional transmission build for years. FERC’s reforms are meaningful but incremental; transmission buildout and planning remain the central missing piece.
Data Points: Projects in U.S. interconnection queues: About 2 terawatts - Guest says almost all are clean energy, mostly wind, solar, and storage Existing U.S. grid capacity: About 1.25 terawatts - Used for comparison with queued generation Typical queue wait time: 3 to 5+ years - Time from application to learning whether a project can connect PJM queue size: 3,000 queued projects - Discussed as the largest and slowest queue example PJM peak demand: 150 gigawatts - Characterized as the nation’s largest grid operator PJM wind and solar share: Less than 5% - Guest notes relatively low variable generation in PJM Interconnection queue processing nationally: About 3 years - Referenced as a rough national average Interconnection queue processing in PJM: Typically 5 years - Described as slower than the national average Transmission upside from grid-enhancing technologies: 30–50% more throughput - Mentioned as a common range these technologies can enable Payback time for some grid-enhancing technologies: Months, not years - Used to argue they are highly cost-effective FERC order: Order 2023 - The major recent reform package discussed
Pivotal Quotes: "“There’s currently two terawatts of generators asking to connect to the US grid, and almost all of that two terawatts is clean energy, wind, solar, and storage.”" — Chas Teplin: Explaining why interconnection queues are such a big deal now "“That’s right. Everybody’s trying to avoid it.”" — Chas Teplin: Describing how developers try to avoid being assigned major transmission upgrade costs "“There’s no substitution for transmission.”" — Chas Teplin: Summarizing the core solution beyond queue-process reforms
Implications: Queue reforms should help, but the industry still needs major regional transmission planning, better use of existing lines, and smarter treatment of storage and deliverability. Without that, clean-energy buildout, reliability, and emissions targets will remain constrained.