PJM’s Energy Transition at Risk: Local Siting and Interconnection Challenges Threaten Grid Reliability

PJM’s Energy Transition Faces Critical Challenges

This week’s conversation is with Evan Vaughn, executive director of the Mid-Atlantic Renewable Energy Coalition (MAREC). The trade group represents many of the 13 states in the PJM Interconnection region, including Virginia, where energy demand is high. MAREC reached out to discuss energy trends, including transmission build-outs and renewable energy resilience in the Trump 2.0 era.

The following conversation was lightly edited for clarity.

Where Does MAREC Stand as the Inflation Reduction Act’s Momentum Fades?

Vaughn explains that the momentum from the Inflation Reduction Act has sustained energy development up to this point. However, the future is uncertain as tax credits phase out by July, and PJM faces significant milestones, including the first post-transition cluster study with allocations due in April. Vaughn notes:

"That first post-transition cluster is going to be really indicative of what direction we see the future energy mix shaping up like in PJM going forward. It’s an interesting time to have this conversation because we’re at such an inflection point."

Local Siting Conflicts: A Major Roadblock for Energy Development

Vaughn highlights that local siting challenges are a significant barrier to adding new generation to the grid. These issues affect all energy sources, not just wind and solar, which have dominated PJM’s queue over the past five years. He points to the Chesterfield gas plant in Virginia as an example of local opposition beyond renewables.

PJM has processed numerous queue applications and cleared backlogs, but projects often face hurdles once they exit the queue. Vaughn describes the PJM queue as "a conveyor belt heading into a volcano." Projects encounter issues such as:

• Local permit denials
• Supply chain delays
• Rising interconnection costs

Of these, local siting is the most immediate challenge. Vaughn warns that it remains a "sleeper issue" for politicians and the public due to confusion over who controls the future of electricity generation. While PJM, states, and federal policy all play roles, the ultimate responsibility lies with thousands of local officials across PJM’s 13 states. Their decisions will determine whether enough generation meets demand to keep the lights on.

Last week, a feature on transmission development in the PJM region emphasized the urgent need for new infrastructure to support the energy transition.