A new report from the Solar and Storage Industries Institute (SI2) outlines how a reform proposal currently under review by the Southwest Power Pool (SPP) could significantly streamline the long‑standing backlog of renewable energy projects awaiting grid connection. The report, titled “Interconnection Reform: How One Grid Operator Is Changing the Game,” underscores ways regional grid operators can combine transmission planning and interconnection processes, including interconnection reforms, to reduce delays and uncertainty for developers, according to Solar Power World.
At the heart of the proposals is the SPP’s “Consolidated Planning Proposal” (CPP), which SI2 says represents one of the most comprehensive efforts in the country to link long‑term transmission planning with interconnection approval and cost‑allocation. Instead of forcing each developer to shoulder unpredictable network upgrade costs, the CPP incorporates an “entry‑fee” model, a flat fee to join the interconnection queue, alongside collective transmission planning. Under this structure, the broader grid network (not just individual projects) is built out in an organized way.
According to SI2 Executive Director David Gahl, “This is what game‑changing interconnection reform looks like in practice,” and he urged other regional operators to study the SPP proposal carefully.
Why reform is urgent
The energy transition in the U.S. currently faces a major bottleneck at the grid‑connection stage. Even after federal reforms under the Federal Energy Regulatory Commission (FERC) in 2023, the backlog remains massive: around 2,300 gigawatts (GW) of proposed clean‑energy projects are still awaiting interconnection approval, nearly double the current U.S. electricity generation capacity. Solar and storage projects make up roughly 80% of this backlog. (SI2)
Industry data shows, however, that reforms are beginning to pay off: In 2024, U.S. grid interconnection agreements hit a record 75 GW, a 33% increase over the prior year, according to a report from consultancy Wood Mackenzie. Solar and storage accounted for about 75% of that total.
These numbers suggest that speeding up interconnection, combined with smarter planning, could unlock substantial clean‑energy capacity in the near term.
Key benefits for developers, utilities & consumers
The SI2 report argues that interconnection reform could yield multiple benefits:
- Faster and more predictable grid connection — reducing time and financial risk for developers.
- More efficient transmission build‑out — by aligning long‑term planning with interconnection demand, reducing redundant network upgrades.
- Lower overall system costs — by avoiding piecemeal upgrades tied to individual projects and spreading costs more equitably across all users.
- Greater reliability and acceleration of solar and storage deployment — helping meet rising electricity demand and clean‑energy targets.
Cautions & implementation challenges
While the SPP’s plan draws wide praise, SI2 acknowledges “key questions” remain about how the reforms will be implemented, particularly how costs will be shared and how transmission‑planning will scale with rapid growth in interconnection requests.
Experts also warn that while recent increases in interconnection agreements are promising, regional disparities persist. Some grid operators have already streamlined queue processing, while others continue to struggle with delays and speculative entries. (pv magazine International)
Given the scale of the backlog and the complexity of transmission build‑out, full realization of the proposed reforms will require careful oversight, regulatory commitment, and likely additional infrastructure investment.
What’s next
For developers, utilities, and policymakers, the new SI2 report strengthens the case that modernizing interconnection and transmission planning is critical to accelerating America’s clean‑energy transition.