permitting

Permitting Delays Could Drive Up PJM Power Costs by $100 Billion

Researchers said slow power plant approvals threaten reliability as AI-driven electricity demand rises.

Georgina Mackie

May 13, 2026 — 2 min read

Photo of Will Polen, senior director at the United States Energy Association, Tuesday at a USEA event.

WASHINGTON, May 13, 2026 – Delays in permitting and generator interconnection approvals are driving up electricity costs and slowing the buildout of new power generation needed for rising AI-driven demand, according to a study presented Tuesday.

The analysis modeled multiple buildout scenarios for the PJM electricity market over a 20-year period using a high-load-growth demand forecast tied to artificial intelligence, data centers, electrification, and advanced manufacturing.

Researchers estimated the most constrained scenario increased system costs by roughly $100 billion after accounting for energy, ancillary services, demand response, and unserved energy costs.

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permitting Artifical Intelligence USEA PJM Rob Homer

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