Disclaimer: This blog post, which answers “What are the surplus interconnection rules for PJM?,” was generated using PCI’s ISO/RTO Documentation AI Chatbot, powered by ChatGPT. While the content is based on curated market documentation, it is intended for informational purposes only and may not reflect the most up-to-date or comprehensive information. We recommend verifying any key details directly with relevant sources before making business decisions.
For the latest answer to this question, generated live, visit our free ISO/RTO Documentation Chatbot.
Â
Â
When it comes to optimizing grid capacity, PJM’s surplus interconnection service offers a unique opportunity for developers to make the most of unused interconnection rights. This service allows existing generating facilities to share their unused capacity with new or additional projects, creating a more efficient and flexible use of the transmission system. But how does it all work, and what do you need to know to take advantage of it?
In this blog post, we’ll explore the ins and outs of PJM’s surplus interconnection rules. You’ll learn who can apply for this service, what agreements are required, how PJM studies these requests, and how surplus capacity can be leveraged for co-located or hybrid resources. By the end, you’ll have a clear understanding of how surplus interconnection service can help maximize grid efficiency and support innovative energy projects.
ISO/RTO Documentation Chatbot
Use our AI to search Business Practice Manuals from ISO/RTO markets at no cost.
What is surplus interconnection service, and who can apply?
Surplus interconnection service in PJM allows developers to utilize unused portions of interconnection capacity at an existing generating facility. This service ensures that the total interconnection capacity at the point of interconnection remains the same, even when surplus capacity is used.
Both existing project developers and unaffiliated developers can apply for surplus interconnection service. However, the existing project developer or its affiliates have priority. If they choose not to use the surplus capacity, unaffiliated developers can step in and submit a request. This flexibility opens the door for new projects to benefit from existing infrastructure, reducing costs and accelerating development timelines.
For example, imagine a wind farm that’s interconnected to the grid but doesn’t always operate at full capacity. The unused interconnection rights could be allocated to a solar project or an energy storage system, creating a hybrid resource that maximizes the use of the existing point of interconnection.
What agreements are required for surplus interconnection service?
To apply for surplus interconnection service, developers must submit a fully executed Surplus Interconnection Study Agreement. This agreement is the cornerstone of the process and must include:
- Location details:Â A written description and map of the proposed surplus generating unit or existing surplus generating unit.
- Ownership evidence:Â Proof of ownership interest or the right to acquire or control the surplus generating unit.
- Shared facilities agreement:Â If the surplus generating unit is owned by a different entity than the existing facility, a shared facilities agreement must outline roles and responsibilities.
Once the agreement is submitted, PJM reviews it to ensure all requirements are met. If any deficiencies are found, the applicant must address them before the process can move forward.
How PJM studies surplus interconnection requests
PJM conducts a Surplus Interconnection Study to evaluate the feasibility of the request. This study includes analyses of reactive power, short circuit/fault duty, stability, and steady-state thermal and voltage conditions. The goal is to ensure that the surplus interconnection service won’t compromise grid reliability.
For instance, if a developer proposes adding a battery storage system to an existing solar farm, PJM will assess whether the combined output can be reliably accommodated at the point of interconnection. If the study identifies any network upgrades or reliability concerns, the request may be terminated.
The study process typically takes up to 180 days, depending on the complexity of the request. Once completed, PJM issues a revised Interconnection Service Agreement or Generation Interconnection Agreement to the owner of the existing facility, detailing the terms and conditions for surplus interconnection service.
How surplus capacity supports co-located and hybrid resources
One of the most exciting applications of surplus interconnection service is its potential to support co-located and hybrid resources. By sharing interconnection capacity, developers can combine different technologies — like wind, solar, and storage — at a single point of interconnection.
For example, a wind farm with surplus capacity during off-peak hours could pair with a battery storage system to store excess energy and release it when demand is high. Similarly, a solar project could share its interconnection rights with a natural gas peaker plant, creating a hybrid resource that balances renewable generation with dispatchable power.
This approach not only maximizes the use of existing infrastructure but also supports the transition to a more flexible and resilient grid.
Why surplus interconnection service matters
PJM’s surplus interconnection service is a game-changer for developers looking to optimize grid capacity and reduce costs. By allowing unused interconnection rights to be shared, it creates opportunities for innovative projects like hybrid resources and co-located facilities.
Whether you’re an existing project developer or exploring new opportunities, understanding the rules and processes for surplus interconnection service is key to unlocking its potential. With the right agreements in place and a clear understanding of PJM’s study process, you can make the most of this valuable service and contribute to a more efficient and sustainable energy future.
For the latest answer to this question, generated live, visit our free ISO/RTO Documentation Chatbot.
