DOE delivers $2B to expand grid for renewables, extreme weather

By Brian Dabbs | 10/18/2024 06:32 AM EDT

The 38 projects would upgrade and build new transmission in 42 states.

Electric transmission lines are shown in Lansing, Michigan.

Electric transmission lines are shown in Lansing, Michigan. Al Goldis/AP

The Department of Energy on Friday announced nearly $2 billion in funding for transmission projects nationally, marking a key step in the Biden administration’s efforts to strengthen the electricity grid in the face of climate change and rising power demand.

The 38 projects, which are funded by the 2021 bipartisan infrastructure law, include new power lines; reconductored lines to boost capacity; wildfire protections for grid infrastructure; and microgrids, which are electricity systems that can operate independently.

“With these projects, we’re investing in resilience,” Energy Secretary Jennifer Granholm said on a call with reporters ahead of the announcement.

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“We’re deploying software to improve interconnection queues, and we’re meeting rising energy demand including from data centers,” she said.

The projects, which are still being finalized, are backed by the $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) Program authorized in the infrastructure law, which Granholm called the “single largest investment in our grid in history.”

The grants would impact 42 states and the District of Columbia, and construct more than 300 miles of new power lines. They’re expected to support 6,000 jobs and 7.5 gigawatts of new transmission capacity, DOE said.

The projects would affect some of the largest energy-producing states in the country, including Texas, where Entergy Texas plans to use the funds to fortify grid infrastructure from extreme weather.

Other projects would boost the power system in areas recently hit by Hurricane Helene, which caused severe damage and flooding in North Carolina and Tennessee, and Hurricane Milton, which caused mass power outages in Florida.

The Tennessee Valley Authority, for example, received the largest grant of $250 million. It plans to add 2,400 megawatts of transmission capacity and create its first interconnection with the Southwest Power Pool, a grid region spanning 14 states.

Other large projects include a plan by Arizona Public Service to upgrade wood utility poles and grid-monitoring systems to reduce the effects of wildfires on the grid.

Boston-based GridUnity is aiming to deploy software streamlining the interconnection process in grid areas covering 70 percent of the U.S. population. A lack of interconnection points has been a challenge for many renewable projects, creating backlogs in swaths of the country.

The funding also targets advanced technologies. An initiative led by Highland Electric Fleets, for example, would use electric school buses essentially as batteries to feed power back to the grid.

Data center trouble

Power providers say the projects could help address projected growth in electricity demand in coming years. According to a new report from Wood Mackenzie, U.S. power demand is expected to jump 4 to 15 percent nationally through 2029, the sharpest growth since World War II.

The estimated growth stems partly from new electric vehicles and electric heating and appliances in U.S. homes. Artificial intelligence and data center operations are likely to boost demand further.

“This federal funding is an important tool as [electric cooperatives] work to meet tomorrow’s energy needs,” said National Rural Electric Cooperative Association CEO Jim Matheson about the Biden administration announcement. NRECA is one of the DOE awardees as part of a $98 million grid project in Georgia and 10 other states.

Another project would fund the Delaware County Electric Cooperative to protect against outages caused by weather and tree damage because of invasive insects.

While some utilities are racing to build new gas plants to produce power, some experts say improved efficiency could help meet the increased demand.

Some efficiency measures are included in the projects announced Friday. Six of them involve reconductoring of transmission lines, which involves replacing lines with ones that move more electricity. A study published recently by the National Academy of Sciences said reconductoring could save $180 billion in costs for new lines.

According to DOE, the announced projects will increase the capacity of 650 miles of existing power lines.

Microgrids are involved in seven projects, including one for a U.S. military base in Hawaii.

Separately, DOE disbursed $2.2 billion from the GRIP Program for transmission projects in August and $3.5 billion last year. Earlier this month, the administration released a planning road map for a large expansion of the grid to help meet climate goals.

Reporter Christa Marshall contributed.