FERC Reforms Target Grid Interconnection Backlog as Storage Delays Persist

The U.S. queue of generation and storage projects seeking permission to connect to the electric grid remained at approximately 2,061 gigawatts (GW) at the end of 2025, according to Lawrence Berkeley National Laboratory’s annual Queued Up tracking. Although the total has declined from roughly 2,600 GW at the end of 2023 and about 2,290 GW at the end of 2024, it is still above 2,000 GW and roughly comparable to all operating U.S. generating capacity combined. For developers, contractors, and suppliers, this backlog is a material delivery constraint: projects can face years between development and grid access, complicating schedules, financing assumptions, equipment planning, and the timing of procurement demand.

Battery storage is a growing part of the queue and faces the same extended interconnection timelines as other generation projects, despite its potential to support grid reliability. Batteries can be paired with solar generation or developed as standalone assets and dispatched quickly when needed. The source cites Dominion Energy’s storage plan in Virginia as an example of the technology’s role in the market. Yet the system’s technical value does not remove the need to complete studies, secure agreements, and satisfy grid-operator requirements before projects can connect. The source also notes that most projects entering interconnection queues ultimately are not built, reinforcing the importance of distinguishing early-stage queue capacity from projects likely to proceed.

The Federal Energy Regulatory Commission (FERC) has been working for roughly three years to address the bottleneck through Order No. 2023, a broad overhaul of generator interconnection rules. On July 24, 2025, FERC ordered PJM Interconnection to change how it studies developer requests to connect to the grid after finding that PJM’s existing compliance plan did not fully satisfy Order No. 2023. That intervention illustrates that implementation is not simply a matter of adopting a federal rule: regional grid operators may need further revisions, and FERC oversight can shape the timing and details of those changes. Order No. 2023 also established co-location standards that allow a battery storage project to share a single interconnection request with a co-located generation asset, potentially changing how developers structure projects and prepare submissions.

Early results show progress, but not a resolution of the nationwide backlog. In PJM’s first transition cycle, 84 generation and storage projects totaling 14.3 GW received interconnection agreements. Of those, 21 were battery energy storage resources, representing 1.9 GW. Those agreements demonstrate that battery projects are advancing under the transition process, while the overall queue remains exceptionally large and delays remain a planning concern. For the GovCon and energy supply base, the practical implication is to monitor FERC tariff proceedings and grid-operator reform deadlines, incorporate multi-year interconnection uncertainty into project schedules, and align equipment, construction, and support-service planning with realistic milestones rather than queue position alone.

• National backlog: Queue capacity was approximately 2,061 GW at the end of 2025, down from 2,600 GW in 2023 and 2,290 GW in 2024, but still above 2,000 GW.
• Scale of the constraint: The backlog is roughly equal to all operating U.S. generating capacity combined, making interconnection a major bottleneck for new grid resources.
• Regional distribution: Active queue capacity is highest in the non-ISO West, followed by ERCOT. Queue capacity declined in 2025 in all regions except ERCOT and SPP.
• PJM transition results: 84 projects totaling 14.3 GW received agreements in PJM’s first transition cycle; 21 battery projects accounted for 1.9 GW.
• FERC oversight: On July 24, 2025, FERC directed PJM to revise its study process after determining its compliance plan did not fully meet Order No. 2023.
• Project-design consideration: Order No. 2023’s co-location standards allow storage and a co-located generation asset to use a single interconnection request, a potential factor in project configuration and submission planning.
• Schedule and supply-chain exposure: Developers, contractors, and energy-sector suppliers should account for multi-year delays when forecasting construction starts, equipment demand, and related procurement needs.
• Action for market participants: Track FERC tariff proceedings and grid-operator implementation deadlines, and distinguish queue capacity from projects with executed agreements and credible paths to construction.