A recent report from Wood Mackenzie shows that grid-connection agreements in the US will increase 33% year-over-year in 2024, reaching a record 75 GW. Of these, 58 GW, or 75%, will be for solar and energy storage projects.

The report states that as grid-connection processes are gradually streamlined, new project applications from regional grid operators have decreased by 9%, while the withdrawal rate for non-viable projects has increased by 51% since 2022, accelerating grid-connection research.

Kaitlin Fung, Wood Mackenzie's North American utility-scale solar research analyst, said: "Reforms are showing positive signs of accelerating grid-connection approvals."

The report predicts that solar projects will continue to dominate grid-connection agreements in 2025, having accounted for more than half of all agreements signed since 2019.

The grid-connection success rates and approval times vary significantly among operators in different regions. The Electric Reliability Council of Texas (ERCOT) leads in grid connection efficiency and speed, thanks to its streamlined queuing and managed access model. The Independent System Operator of New England (ISO-NE) has a high application success rate, but still experiences the longest approval times due to a slow transition from serial to cluster approvals. The California Independent System Operator (CAISO) ranks third, but its grid connection success rate is low due to an overabundance of speculative projects.

The report also notes that natural gas project grid connection applications have increased to 121 GW since 2022, but the percentage of successful approvals has decreased by 25%, primarily due to projects in the PJM, MISO, and ERCOT regions.

"Despite positive momentum, regional disparities in approval times highlight the need for continued reform," said Feng.