Inside the Interconnection Backlog: ZEG’s Perspective on What’s Really Driving the Delays

Inside the Interconnection Backlog: ZEG’s Perspective on What’s Really Driving the Delays

  • Projects are slow to reach the finish line. Historical data show only ~19% of projects entering U.S. queues between 2000–2018 have reached commercial operation (Berkeley Lab, 2024).
  • Timelines keep stretching. Median time from request to operation now averages about five years, up from under two decades ago.
  • Costs vary widely. In PJM, completed projects between 2020–2022 averaged interconnection costs of $240/kW, while withdrawn projects faced about $599/kW (DOE I2X, 2024).

Restudies are the hidden delay. When projects drop out or change configuration, the remaining proposals must be re-analyzed. Even well-prepared projects can be pushed back through no fault of their own.

Transmission upgrades are the long pole. Study timelines are only part of the wait. Permitting and building the physical upgrades—new lines, substations, transformers—often outlast the study process.

Rules differ by market. Cluster studies, first-ready/first-served criteria, and cost-allocation methods vary across RTOs. Developers operating in multiple regions face a moving target of procedures and expectations.

Recent reforms, such as FERC Order 2023, aim to reduce speculation and encourage readiness by grouping projects into clusters and rewarding completeness. Some markets (e.g., MISO, PJM, CAISO) have begun implementing these changes, while others are still in transition.

These reforms hold promise, but uneven rollout means that market-specific nuance remains critical. Early adopters are experimenting with new models such as “connect and manage,” which allows limited interconnection while longer-term upgrades are planned.

At ZEG, we’re staying on top of these evolving changes. We analyze transmission constraints and study results for developers and utilities. From this work, a few observations stand out:

  • High-fidelity data matters. Projects with robust modeling and complete technical packages still face delays, but they experience fewer restudy triggers and clearer cost estimates.
  • Location remains decisive. Even under cluster models, headroom and upgrade needs vary dramatically across substations and corridors.
  • Policy engagement pays off. Teams that follow stakeholder processes closely are better positioned to anticipate rule changes that can affect timing or cost.

These aren’t prescriptions, they’re recurring themes we see across dozens of projects and markets.

The queue challenges are well publicized, but the lived experience is more complex than a single headline. By sharing data, lessons, and patterns we observe in daily project work, we hope to add clarity to a process that remains one of the most critical, and solvable, barriers to a clean-energy grid.

Resources: