5 key questions about US grid interconnection answered

With US electricity demand rising for the first time in decades, there is increased pressure to bring new generating capacity online. However, long interconnection timelines have historically been a persistent bottleneck that delay planned online dates and bring last minute upgrade costs.  In response, federal reforms were introduced two years ago to streamline the process. But are these changes improving the state of interconnection queues? 

We have just published a detailed update on the state of US grid interconnection, using information that will soon be available to clients via a new ‘interconnection queue’ feature in our Lens Power & Renewables platform. Fill out the form at the top of the page to download an extract from the full report or read on for a quick overview of the topic. 

1. What has FERC implemented to improve the state of interconnection? 

Issued in July 2023, Federal Energy Regulatory Commission Order No. 2023 was aimed at helping Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) streamline the process for connecting projects to the grid and discourage speculative projects that contribute to large queue backlogs.  

Cluster study requirements and financial penalties for missed deadlines are designed to both accelerate grid interconnection and better distribute grid upgrade costs among the cluster. Cluster studies group multiple projects at a single point of interconnection, allowing them to share network upgrade costs. Meanwhile, strict deadline enforcement and penalties pushes ISOs/RTOs to move through queues faster, reducing study backlogs that further delay viable projects. 

2. Are these reforms having an impact? 

Data on interconnection queues from our Lens Power & Renewables platform shows that these reforms are showing early signs of promise in accelerating the pace of interconnection studies.  In 2024, regional grid operators processed 33% more interconnection agreements compared to the previous year. At the same time, a 9% decline in new project entries and a 51% increase in withdrawals of non-viable projects have helped reduce queue backlogs. 

3. How much capacity is being added to the grid? 

Interconnection agreements reached historic highs in 2024 with 75 GW of secured capacity, and 2025 is maintaining this momentum. Major grid operators have already secured 36 GW through July 2025, positioning the year to match 2024’s record. 

4. Are there regional differences in success rates and processing times? 

In a word, yes – interconnection success rates and queue processing times vary dramatically for different grid operators. In Texas, ERCOT’s connect-and-manage approach is proving particularly successful, leading to the highest success rates and speed to interconnection approvals (IA), taking on average a little over one year.  

ISO New England (ISO-NE) ranks second for success rates behind ERCOT. However, its delay in moving from serial processing to the new cluster-based approach means it currently takes nearly four times longer than ERCOT to sign an IA.  In contrast, California’s high volume of speculative projects means that despite ranking third for speed in IA approvals, CAISO has one of the lowest project success rates.   

5. Which project types make up the highest volume of secured interconnection agreements? 

Solar and storage accounted for three-quarters of interconnection agreements signed in 2024, totalling 58 GW of capacity. Since 2019, solar has accounted for half of all signed IAs, a trend that continues in 2025. Even with federal policy changes putting downward pressure on wind development, wind projects have continued to enter the queue in 2025.  

For thermals, natural gas has seen an increase in interconnection requests since 2022, adding 121 GW of capacity. This trend has continued in 2025 with new applications for gas generation already breaking annual records by mid-year. However, the number of successful gas interconnection agreements is down 25% since 2022, mainly in PJM, MISO and ERCOT. For more details on the drivers in these markets, review the full report (‘Tracking the progress of US grid interconnection – 2025 market update’). 

Learn more 

Don’t forget to fill in the form at the top of the page to download an extract from the report, which delves into this topic in more detail with a range of charts and data drawn from our proprietary Lens Power & Renewables tool and the new interconnection feature.