Sites with grandfathered queue positions in PJM, ERCOT, or supply-constrained zones carry nine-figure time-to-market value because new interconnect requests in those markets now face 24 to 48 month timelines. Lenders price the secured interconnect at materially tighter spreads and higher leverage than equivalent sites starting from scratch.
Why time-to-market is now the dominant value driver
Per PJM, MISO, CAISO, ERCOT, and SPP queue reports, interconnect timelines have lengthened materially over the last several years. A site with secured 100 MW capacity and an existing energization commitment can deliver to a hyperscale tenant 24 to 36 months earlier than a comparable site starting from scratch in 2026.
Sponsors with grandfathered interconnect capacity in supply-constrained zones command rent premiums and tighter financing spreads. Lenders treat the secured interconnect as a credit-positive variable on every dimension, sizing, pricing, recourse, and covenant flexibility all move in the sponsor's favor.
Sources
- New Services Queue and Generator Interconnection Status · PJM Interconnection · current
- Capacity, Demand and Reserves (CDR) Report and Large Load Reports · Electric Reliability Council of Texas (ERCOT) · current
- Order No. 2023: Improvements to Generator Interconnection Procedures and Agreements · Federal Energy Regulatory Commission (FERC) · current