U.S. Offers $15 Billion Loan to PG&E for Climate Resilience

The U.S. Department of Energy has proposed a conditional loan of up to $15 billion to PG&E for climate resilience and electrical grid upgrades. The loan aims to refurbish the utility's hydroelectric infrastructure, expand battery energy storage, and improve power lines. Technical and legal conditions must be met before finalizing the loan.

The United States has announced a conditional loan offer to PG&E, a major utility based in California, to bolster its climate resilience efforts and upgrade its electrical grid. The Department of Energy revealed the potential $15 billion loan on Tuesday.

If approved, the loan will finance projects aimed at refurbishing PG&E's hydroelectric infrastructure and power lines. It will also support the expansion of battery energy storage and transmission, as part of the Biden administration's broader push to enhance national energy infrastructure.

The DOE and PG&E must fulfill various technical, legal, and environmental prerequisites before entering definitive financing agreements. This loan represents part of a larger initiative by U.S. utilities to better prepare for extreme weather and meet growing industrial energy demands.

(With inputs from agencies.)