Cochise, Arizona – In a groundbreaking move, the U.S. Department of Energy (DOE) has unveiled a commitment of up to $1.3 billion for the development of three transmission lines spanning six states.
This commitment, a crucial element of President Biden’s Investing in America agenda, is set to revolutionize the U.S. energy landscape.
Made possible by the Bipartisan Infrastructure Law, the initiative aims to enhance grid capacity by 3.5 gigawatts (GW), which would be sufficient to power approximately three million homes. Moreover, it is expected to generate over 13,000 direct and indirect jobs.
The ambitious projects align with the Biden-Harris Administration’s climate goals, prioritizing grid resilience, reliability, and affordable clean energy access for households and businesses.
U.S. Secretary of Energy Jennifer M. Granholm emphasized, “To achieve our nation’s goal of 100% clean electricity by 2035, we need to more than double our grid capacity. President Biden’s Investing in America agenda puts us in position to do just that.”
The recently unveiled National Transmission Needs Study further underlines the necessity of bolstering the nation’s transmission capacity to meet future energy demands and combat climate change. The study projects a need for more than double the existing regional transmission capacity by 2035.
The Transmission Facilitation Program (TFP), funded by the Bipartisan Infrastructure Law, is a pivotal element of this endeavor. With a $2.5 billion revolving fund, the TFP aims to surmount financial barriers associated with large-scale transmission line projects. Through the program, DOE is able to purchase a portion of the proposed capacity, thereby reducing risks for project developers and attracting additional investors.
Among the selected projects, the Cross-Tie 500kV Transmission Line in Nevada and Utah, the Southline Transmission Project in Arizona and New Mexico, and the Twin States Clean Energy Link in New Hampshire and Vermont are set to strengthen grid resilience, facilitate clean energy integration, and enhance energy accessibility in their respective regions.
DOE foresees a second round of TFP funding in early 2024, totaling up to $1 billion. This historic commitment and strategic initiatives mark a significant stride towards a sustainable, robust, and reliable energy future for the United States. It also underscores the need for asset managers to invest in software solutions now, ensuring they are well-prepared to scale their operations.
With the monumental $1.3 billion investment in U.S. grid expansion and the ambitious goals of achieving 100% clean electricity by 2035, the future of the energy landscape is poised for transformation. The time for asset managers to invest in innovative solutions and position themselves at the forefront of the renewable energy revolution is now.