THE ENERGY INDUSTRY
IN CHARTS
The Interconnection Queue to Installed Capacity Ratio Has Dramatically Increased Since 2010
95% of the resources currently in the interconnection queue are zero-carbon resources with nearly 1,500 GW of generator capacity and 1,000 GW of storage capacity.
Historically, only ~20% of interconnection requests, comprising 14% of planned capacity for interconnection, made from 2000 through 2018 reached commercial operations by the end of 2023.
Figure 6.1: Entire U.S. Installed Generation Capacity vs. Active Projects in Interconnection Queue
Source: Lawrence Berkeley National Laboratory, Queued Up: 2024 Edition
Provisions Contained in the Inflation Reduction Act (IRA) Supercharged Clean Energy Development in the Interconnection Queue
With a phase out no earlier than 2032, the new Clean Energy Investment Tax Credit (ITC) and Clean Energy Production Tax Credit (PTC) provide entities with the security of long-term planning.
The new credits, which become effective in 2025, will be technology neutral and include eligiblity for standalone storage and new nuclear assets.
Further, there are adder provisions related to wage and apprenticeship requirements, domestic content, energy and low-income communities, and low-income project requirements that can raise the maximum ITC from 6% to 70% and the PTC from .50¢/kWh to 3.20¢/kWh.
Figure 6.2: Interconnection Queue Activity Pre- and Post-IRA
Source: Lawrence Berkeley National Laboratory, Queued Up: 2024 Edition