The United States Energy Association and Energy Exemplar today announced the publication of a new report, developed in partnership with Energy Exemplar: The Cost of Permitting Delays: Long-Term Impacts on Electricity Prices and System Reliability.
The report examines how permitting and interconnection delays affect long-term electricity costs, reliability, emissions, and investment timing in the PJM Interconnection, the nation’s largest wholesale electricity market. Using Energy Exemplar’s PLEXOS modeling platform, the analysis evaluates how different infrastructure delivery timelines shape power system outcomes under rising electricity demand driven by data centers, artificial intelligence, electrification, and broader economic growth.
“Permitting and interconnection delays are not simply administrative barriers, but system-level risks that directly shape cost, reliability, and long-term investment outcomes. As electricity demand accelerates, the ability to deliver infrastructure on time becomes as important as the resources themselves,” states Hon. Mark W. Menezes, President & Chief Executive Officer of USEA.
The analysis finds that when delivery timelines become the binding constraint, the power system may build resources later than needed, rely more heavily on higher-cost marginal generation, and face increased reliability risk during critical periods. The report concludes that permitting reform is not only a development issue, but a central determinant of long-term electricity affordability, reliability, emissions, and regional economic competitiveness.
You may read the full report here.
Founded in 1924, USEA is a nonpartisan organization serving as a neutral forum for the global energy sector, partnering with the U.S. government to advance energy security and technological leadership.
Energy Exemplar is a global leader in energy modeling and simulation software — trusted by government agencies, utilities, ISOs/RTOs, and Fortune 500 companies worldwide — with its core platform PLEXOS being one of the world’s most advanced integrated energy modeling software.
