United States Energy Department Announces $2.2 Billion Investment to Strengthen National Grid

To fortify the nation’s electrical infrastructure and bolster renewable energy capabilities, the US Department of Energy (DOE) unveiled $2.2 billion in funding across 18 states. This substantial investment aims to enhance grid resilience against extreme weather, facilitate the transition to cleaner electricity, and meet the increasing power demand.

Energy Secretary Jennifer Granholm emphasized the critical importance of the $2.2 billion in the light of escalating climate change-driven weather events, which have frequently caused power outages and significant disruptions nationwide. The funding will support the construction of over 600 miles of new transmission lines and the upgrade of approximately 400 miles of existing lines, enabling them to carry higher currents and accommodate additional renewable energy sources.

Granholm highlighted these investments’ profound impact, benefiting 56 million homes and businesses by delivering more reliable and affordable electricity. This initiative marks the largest direct investment ever made in the nation’s grid, paving the way for electrified homes, businesses, new manufacturing facilities, and burgeoning data centres.

The funding of the DOE Grid Resilience and Innovation Partnerships program funded through the Bipartisan Infrastructure Law of 2021 represents the second round of awards. Additional projects will be announced later this fall, further advancing national grid modernization efforts.

Notable projects in this funding round include upgrading over 100 miles of transmission lines in California to expedite the integration of renewable energy and meet growing electricity demands. In New England, upgrades to onshore connection points will enable the addition of 4,800 megawatts of offshore wind energy, sufficient to power approximately 2 million homes.

A significant allocation of $700 million will support the construction of a 415-mile high-voltage direct current transmission line across Montana and North Dakota. Known as the North Plains Connector, this project will enhance electricity transmission capacity between eastern and western regions while fortifying resilience against extreme weather events.

Furthermore, the Virginia DEO will receive $85 million to implement clean electricity and backup power solutions for two data centres, setting a precedent for grid-responsive infrastructure that can contribute surplus electricity during peak demand or reduce energy consumption as needed.

The $2.2 billion investments represent a positive step forward and are crucial for meeting our deep decarbonization and net-zero goals, remarked Max Luke, director of business development and regulatory affairs at VEIR, highlighting the scale of the challenge ahead in expanding and modernizing the US electricity transmission infrastructure.

According to Princeton University’s “Net-Zero America” research, substantial expansion of electricity transmission capacity—up to 60% by 2030 and potentially tripling by 2050—will be essential to achieve national decarbonization objectives.

The DOE’s latest funding announcement signals a robust commitment to advancing energy resilience, expanding renewable energy access, and ensuring a sustainable energy future for all Americans.

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