It takes 7 years to plug in a power plant to the grid
The interconnection queue process in the U.S. takes 5-7 years on average to connect new power plants or large energy loads to the grid, creating a major bottleneck for energy and AI infrastructure development. Projects face high costs and delays, with only 13% of those entering the queue reaching commercial operation, while the rest withdraw after paying substantial study fees. The process is slow due to its serial nature, where withdrawals force costly study restarts, and recent FERC reforms aim to reduce speculative applications by increasing financial barriers to entry.
- ▪It takes 5-7 years to clear the interconnection queue for connecting to the grid.
- ▪Only 13% of projects that enter the interconnection queue reach commercial operation.
- ▪The effective cost per project that reaches the grid is $1,974 per kilowatt due to failed projects' sunk costs.
- ▪A single project withdrawal can add up to 18 months of delay for others in congested areas.
- ▪FERC implemented Order 2023 to reduce speculative queue entries by increasing financial deposits.
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It takes 7 years to plug in a power plant to the gridAn analysis of the likely the most expensive queue in the worldAnkit GordhandasApr 30, 2026ShareLet’s say you want to start a data center. You have the land for it, you have the permits to build your data center, the GPUs have been ordered and will arrive on schedule, and you have secured the capital. None of this matters, however, until you clear the interconnection queue: the federal process that every new power plant and every large electrical load must service before a single electron flows. If you were to start this process today, it would take you 5-7 years to clear it. The interconnection queue is where energy projects die.
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