PJM Grid at Critical Juncture: Renewable Energy Transition Faces Local Siting and Policy Hurdles

This week, Evan Vaughan, executive director of the Mid-Atlantic Renewable Energy Coalition (MAREC), joined the conversation to discuss the critical challenges facing the PJM Interconnection region as it navigates the energy transition. MAREC represents stakeholders across 13 states, including Virginia, a region with high energy demand.

In an interview with the coalition, Vaughan addressed key trends shaping the future of energy in PJM, from the expansion of transmission infrastructure to the resilience of renewable energy amid shifting federal policies under a potential Trump 2.0 administration. The discussion was lightly edited for clarity.

Federal Tax Credits Fading: What’s Next for PJM’s Energy Transition?

As the Inflation Reduction Act (IRA) begins to phase out its primary eligibility for tax credits by July, Vaughan noted that the momentum generated by the legislation has sustained the region’s energy transition—so far.

“We’re entering into a little bit of unknown territory going forward,” Vaughan said. “Tax credits are phasing out their primary eligibility by July, and we have some significant PJM milestones coming up, including the first post-transition cluster study with allocations due in April.”

The first post-transition cluster study will serve as a critical indicator of the future energy mix in PJM. Vaughan emphasized that the timing of this study makes the current moment pivotal for the region’s energy trajectory.

Local Siting Conflicts: The Hidden Barrier to Grid Expansion

Local siting challenges are a major obstacle to deploying new generation capacity in PJM, Vaughan explained. While wind and solar projects have faced the most opposition, other energy sources—including natural gas—are also encountering resistance.

“It’s not just a wind and solar issue,” Vaughan said. “It’s any generation source.” He pointed to the Chesterfield gas plant in Virginia as an example of local opposition extending beyond renewables.

PJM’s own assessments highlight the severity of these challenges. The grid operator has processed numerous queue applications and cleared backlogs from its transition, but projects often stall due to supply chain delays, siting disputes, or prohibitive interconnection costs. Vaughan described the PJM queue as “a conveyor belt heading into a volcano,” where projects ultimately face permit denials, supply chain bottlenecks, or insurmountable costs.

Who Decides PJM’s Energy Future?

Among these challenges, local siting remains the most immediate hurdle. Vaughan warned that the issue is still underappreciated by politicians and the public, despite its critical role in determining whether PJM can meet future energy demand.

“There’s confusion over who holds the authority over our electricity generation future,” Vaughan said. “PJM controls many levers, states wield significant power, and federal policy matters. But in the end, whether we have enough generation to meet demand comes down to thousands of local officials across PJM’s 13 states making enough ‘yes’ decisions to ensure we have enough megawatts to keep the lights on.”

Last week, Vaughan authored a feature on the urgent need for transmission development in PJM, underscoring the dual pressures of grid expansion and local approvals.