Energy Department Announces $2.2 Billion to Upgrade Power Grid

Service technicians work to install transmission towers at a power plant in Houston, Texas, on June 10, 2022. (Brandon Bell/Getty Images)

The Department of Energy (DOE) has announced $2.2 billion in funding for eight projects across 18 states to strengthen the electrical grid against extreme weather events, reduce costs, and expand capacity for growing energy demands.

The projects that have been selected to receive the funds will add nearly 13 gigawatts (GW) of grid capacity, including 4,800 megawatts (MW) of offshore wind, and will upgrade a total of over 1,000 miles of transmission, the DOE said in an Aug. 6 press release.

“We must act with urgency to strengthen our aging grid to protect American communities,” Energy Secretary Jennifer Granholm said in a statement, in which she stressed the need for upgrades to protect the grid from extreme weather events that damage towers and bring down wires, causing power outages.

Another key aim of the investments is to expand capacity to meet load growth stemming from an increase in manufacturing and data centers.

“Today’s awards are bringing us closer to our clean energy future by building out transmission and upgrading grid infrastructure from North Carolina to California,” John Podesta, senior advisor to the president for international climate policy.

The Biden administration aims for 100 percent carbon-free electricity by 2035 and net-zero emissions by 2050. Achieving these goals would require a massive upgrade of America’s aging electric grid, including adding more than a million miles of new transmission lines to handle increased electricity demand and connect renewable energy sources like wind in the Midwest and solar in the Southwest to supply it to where it’s needed, according to Harvard’s Belfer Center for Science and International Affairs.

The investments target what Granholm called “the most crucial component of the nation’s infrastructure.” This includes boosting transmission lines in New York and Montana, upgrading existing grids in multiple states, and supporting regional collaborations in New England and the western United States.

Two major projects, Clean Path New York and North Plains Connector, will add 625 miles of high-voltage direct current (HVDC) transmission lines, increasing grid capacity by 4,300 MW and improving overall resilience.

Six of the eight projects will upgrade the existing grid with advanced conductors and dynamic line rating technology, boosting the capacity and efficiency of 400 miles of transmission lines.

Collaborative efforts, such as the RELIEF project headed up by Utah in cooperation with Arizona, California, Idaho, Oregon, and Wyoming, will focus on system contingency issues with the aim of preventing over 5,500 hours of potential outages.

The Power Up New England project, carried out in collaboration with Connecticut, Maine, Rhode Island, New Hampshire, and Vermont, seeks to reduce wholesale energy supply costs for New England customers by about $1.55 billion. The project will also create new offshore wind interconnections in Massachusetts and in Connecticuts, and will enable 4,800 MW of offshore wind.

The funding for the projects comes from the Bipartisan Infrastructure Law’s Grid Resilience and Innovation Partnerships (GRIP) program, which provides a total of $10.5 billion for various projects to enhance grid flexibility and improve its resilience.

Money for the projects selected on Aug. 6 will come in the form of Grid Innovation Program grants, one of three GRIP funding mechanisms.

The agency also said it expects the eight newly selected projects will catalyze over $10 billion in total public and private investment, while creating at least 5,000 jobs.

Across the eight projects, more than $300 million will be invested in community workforce development, scholarships, and apprentice programs, along with grants to community organizations.

“The United States is leading an unprecedented expansion in the capacity of the existing U.S. transmission network, which will further catalyze our work to deliver reliable, affordable power across the country,” White House national climate adviser Ali Zaidi said in a statement.