DOE Allocates $2.2 Billion for Power Grid Enhancement

The Department of Energy announced $2.2 billion in funding for eight projects across 18 states to bolster the electrical grid against extreme weather, advance clean energy, and meet growing power demands. The initiative aims to build 600 miles of new transmission lines and upgrade 400 miles of existing lines.

The Department of Energy on Tuesday announced USD 2.2 billion in funding for eight projects across 18 states to strengthen the electrical grid against increasing extreme weather, advance the transition to cleaner electricity and meet growing power demand.

The money will help build more than 600 miles of new transmission lines and upgrade about 400 miles of existing lines so they can carry more current.

Energy Secretary Jennifer Granholm said the funding is crucial as extreme weather events fueled by climate change are causing damage to infrastructure and leading to power outages.

Hurricane Beryl made landfall in Texas on July 8 and knocked out power to nearly 3 million people. Officials reported at least a dozen heat-related deaths due to the power loss in the Houston area.

The investments aim to provide reliable, affordable electricity to 56 million homes and businesses, according to the DOE. Granholm highlighted that these funds represent the largest direct investment ever in the nation's grid.

"They'll help us meet the needs of electrified homes and businesses, new manufacturing facilities, and growing data centers demanding more from the grid," Granholm said during the funding announcement press call.

This funding marks the second round of awards through the USD 10.5 billion DOE Grid Resilience and Innovation Partnerships program, funded by the Bipartisan Infrastructure Law of 2021. Additional projects will be unveiled later this fall.

In this round, over 100 miles of transmission lines in California will be upgraded for quicker integration of renewable energy, responding to increasing energy demand. In New England, a project will enhance onshore connection points for offshore wind energy, enough to power 2 million homes. The Montana Department of Commerce will receive USD 700 million for a 415-mile transmission line, enhancing east-west energy flow and weather resilience. The Virginia Department of Energy will get USD 85 million for clean electricity and backup power in two data centers, setting a model for reducing grid strain.

"These investments are steps in the right direction," said Max Luke of VEIR, a Massachusetts company developing advanced transmission lines. "However, given the scale of grid capacity needed for deep decarbonization and net zero, it's just a drop in the bucket." Princeton University's "Net-Zero America" research indicates the U.S. needs to expand transmission by 60 per cent by 2030 and potentially triple it by 2050.

(With inputs from agencies.)