Massive Generation Interconnection Queue Backlog

Definition

Two terawatts of capacity are stuck in interconnection queues across the United States—nearly twice the currently installed capacity. This backlog creates multi-year delays for both renewable and conventional generation projects seeking grid connections. For utilities and independent power producers, this means delayed revenue streams, project financing failures, and inability to serve customer demand. Grid operators struggle with oversized interconnection queues (MISO proposed MW caps in 2025) that consume engineering resources without resolution. Nearly half of project delays occur during construction phase due to supply chain bottlenecks, lack of prioritization by transmission owners, and delayed interconnection customers lacking necessary permits or power purchase agreements. This bottleneck prevents utilities from meeting the forecasted 128 GW peak demand increase by 2029 and forces them to retain aging generation assets.

Why This Matters

SaaS project management platforms for transmission operators, interconnection queue prioritization software, specialized consulting for permitting acceleration, interconnection queue intelligence services

Affected Stakeholders

General Manager / Operations Director, Chief Financial Officer / Finance Manager

Related Business Risks