Generator Interconnection Costs to the Transmission System in non-ISO Balancing Authorities

Electric transmission system operators—including Independent System Operators (ISOs), Regional Transmission Organizations (RTOs), and utilities—require proposed power plants to undergo a series of interconnection studies before connecting to the grid. These studies assess what transmission upgrades or new infrastructure may be necessary and assign the associated costs to the project. Lawrence Berkeley National Laboratory has compiled, aggregated, and cleaned interconnection cost data, originally for ISOs/RTOs, and now for five non-ISO Balancing Authorities: PacifiCorp, Bonneville Power Administration, Duke Energy Progress, Duke Energy Carolinas and Duke Energy Florida. Insufficient transparency in interconnection cost data may contribute to rapidly expanding interconnection queues, with active queue capacities tripling between 2020 and 2024 in the studied BAs. Most projects withdraw after receiving high interconnection cost estimates.

Interconnection costs have increased since the early 2000s, with average costs for "complete" projects reaching $194/kW between 2018 and 2024. Active queue projects and withdrawn projects incur substantially higher costs, primarily due to rising network upgrade costs. Recent interconnection costs in non-ISO balancing authorities are higher than in ISO regions, potentially due to a greater willingness to pay among developers. Utility-scale solar, wind, and storage projects have interconnection costs that exceed those for natural gas. However, when focusing on projects that do not withdraw from the queue, the interconnection costs for these technologies are more similar to natural gas projects. Other key findings include: (1) Larger generation projects benefit from lower proportional interconnection costs, (2) capacity transmission service (NRIS) often requires additional network investments, and (3) projects with high network upgrade costs are often clustered geographically.

The dataset includes results from 2,104 interconnection studies conducted between 2000 and 2024, covering projects that are operational, withdrawn, or still progressing through the study process. The Excel file contains (a) the complete project-level interconnection cost dataset, and (b) seven additional tabs summarizing cost metrics across dimensions such as time, market structure, cost category (point of interconnection vs. broader network upgrades), fuel type, service type (ERIS vs. NRIS), generator size, and geography.