US Invests $1.5 Billion in Power Grid Projects 

Funding aims to boost clean energy and grid resilience  

by Victor Adetimilehin

KEY POINTS


  • US government allocates $1.5 billion to four power grid projects.  
  • New projects aim to enhance resilience and clean energy integration.  
  • Projects will add nearly 1,000 miles of new transmission lines.  

The United States government is investing $1.5 billion in four major electricity transmission projects aimed at enhancing the grid’s resilience and expanding clean energy access across the southwestern, southeastern, and New England regions.

This funding comes as part of the second phase of the Transmission Facilitation Program, which was established under the 2021 bipartisan infrastructure law.

Projects to boost grid capacity and resilience

The $1.5 billion in funding will be used to develop nearly 1,000 miles of new transmission lines across Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas. According to David Turk, Deputy U.S. Energy Secretary, the goal of this initiative is to kick-start transmission projects that otherwise would face challenges getting off the ground.

The Department of Energy said that the projects will create about 9,000 jobs while also strengthening power reliability in areas that have previously faced challenges during extreme weather events. According to Reuters, the new grid investments come on the heels of the program’s first phase, which provided support to similar projects in western and northeastern states. 

“We’re leveraging this funding to make significant infrastructure improvements that will ultimately increase our grid’s reliability and resilience,” said Turk, adding that his department plans to buy electricity capacity from these new lines and then sell it back when demand increases.

Major transmission projects underway

The projects receiving the funding include:

Aroostook Renewable Project: This project will connect New England to wind power generated in Maine, providing access to renewable energy for the region.

Cimarron Link: A 400-mile high-voltage direct current line from Texas delivering wind and solar energy to eastern Oklahoma, where demand is growing.

Southern Spirit: A 320-mile line that will connect the Electric Reliability Council of Texas (ERCOT) grid to southeastern power markets, improving power transfer capabilities and preventing outages during extreme weather, such as the 2022 winter storm Uri.

Southline Project: This project aims to construct a transmission line that will bring electricity from wind power generated in western New Mexico to the desert Southwest.

Expanding transmission capacity for the future

The Department of Energy’s National Transmission Planning Study has found that the U.S. will need to double or even triple its transmission capacity by 2050 to meet increasing demand for electricity and maintain grid reliability.

Expanding the nation’s transmission capacity will also offer hundreds of billions of dollars in cost savings through interregional planning and more efficient electricity distribution.

The new projects, alongside the first phase of the Transmission Facilitation Program, are part of an ongoing effort to ensure the U.S. grid can meet future energy demands, particularly as clean energy sources like wind and solar take on a more significant role in the nation’s power supply.

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