- The Biden administration will invest $7.3 billion from the Inflation Reduction Act into clean energy projects led by rural electric cooperatives.
- Nearly $573 million will go to Dairyland Power Cooperative for solar and wind projects in four states: Wisconsin, Iowa, Minnesota, and Illinois.
- The projects will cut over 43 million tons of greenhouse gases annually and create 4,500 permanent jobs and 16,000 construction jobs.
On September 5, the Biden administration unveiled a major initiative to invest $7.3 billion from the Inflation Reduction Act (IRA) into clean energy projects spearheaded by rural electric cooperatives. This substantial funding addresses rural Americans’ unique energy challenges, who often experience higher energy costs and less reliable service than their urban counterparts.
The first significant allocation under this initiative will direct nearly $573 million to Dairyland Power Cooperative, based in La Crosse, Wisconsin. This grant will support the development of four new solar and wind power installations in Wisconsin, Iowa, Minnesota, and Illinois. These projects are expected to play a critical role in expanding the renewable energy infrastructure in these states and will contribute to the overall goals of the IRA.
Agriculture Secretary Tom Vilsack emphasised the importance of this investment for rural communities. “One in five rural Americans will benefit from these clean energy investments,” Vilsack said. “Thanks to partnerships with rural electric cooperatives like Dairyland, this is rural power for rural America.” His comments underscore the administration’s commitment to ensuring that rural areas receive the same advancements in clean energy as urban regions.
The funding is provided through the IRA’s Empowering Rural America (New ERA) program, which promotes sustainable energy solutions in rural areas. This initiative is projected to achieve a significant environmental impact, including reducing more than 43 million tons of greenhouse gas emissions annually. Moreover, it is expected to generate over 4,500 permanent jobs and approximately 16,000 construction jobs, boosting local economies and supporting long-term employment in these communities.
Rural electric cooperatives, which serve around 42 million people across the United States, will be the primary beneficiaries of this program. These cooperatives are crucial in delivering energy to rural areas and are often at the forefront of implementing innovative energy solutions. The new funding is intended to help alleviate the higher energy costs that rural residents face and enhance the reliability of their energy supply.
This funding announcement follows the administration’s previous commitment to invest $2.2 billion in overhauling the nation’s power grid. This grid modernisation effort is crucial as extreme weather events and the growing demand for energy from data centres and other high-consumption facilities have increasingly strained the current infrastructure.
President Biden is scheduled to formally announce the funding in Westby, Wisconsin, on Thursday, September 5. The event will also feature remarks by Secretary Vilsack, highlighting the administration’s dedication to supporting rural communities through innovative energy solutions. The announcement marks a significant step in the administration’s broader goals of advancing clean energy and addressing environmental and economic challenges in rural areas.