U.S. Department of Energy Expedites Grid Interconnection for Large Facilities

In a significant move to address the growing energy demands of large-scale facilities, U.S. Secretary of Energy Chris Wright has directed the Federal Energy Regulatory Commission (FERC) to initiate rulemaking procedures aimed at expediting the interconnection of substantial electrical loads, such as data centers, to the nation's transmission system. This directive, issued on October 23, 2025, underscores the administration's commitment to enhancing the efficiency and reliability of the electrical grid amid increasing industrial energy consumption.

The Department of Energy (DOE) has proposed an Advance Notice of Proposed Rulemaking (ANOPR) that outlines 14 principles for FERC's consideration. These principles emphasize the need for standardized interconnection procedures and agreements for large loads exceeding 20 megawatts. The initiative aims to reduce study times and grid upgrade costs, thereby accelerating the integration of substantial energy consumers into the grid. FERC has been instructed to take final action on this proposal by April 30, 2026.

Historically, FERC has not exerted jurisdiction over load interconnections. However, the DOE argues that the interconnection of large loads directly to the interstate transmission system falls within FERC's jurisdiction. The DOE's directive outlines four legal justifications for this stance, emphasizing the need for standardized procedures to provide open and non-discriminatory access to the transmission system.

The directive has elicited varied responses from industry groups, environmental organizations, and state regulatory bodies. The Edison Electric Institute and the National Hydropower Association have expressed support, viewing the initiative as a means to remove bureaucratic delays and enhance grid access for large consumers. Conversely, some environmental groups have criticized the plan, arguing that it prioritizes industrial interests over environmental oversight, especially during periods of government shutdowns. State utility commissions, such as the Arizona Corporation Commission, have voted to intervene in the ANOPR process, emphasizing the importance of state involvement in ensuring resource adequacy, reliability, and affordability.

This directive aligns with the Trump administration's broader energy policy, which focuses on increasing power capacity through fossil fuel and nuclear energy while improving grid access for data centers. Secretary Wright has been instrumental in these efforts, advocating for policies that streamline regulatory processes and bolster domestic energy production.

As FERC considers the proposed rulemaking, the energy sector anticipates significant changes in interconnection procedures, balancing the needs of rapid industrial growth with environmental and regulatory considerations.