US to Invest $3.5 Billion to Strengthen Power Grid and Integrate Clean Energy
The funding will go to 58 projects across 44 states, including 400 microgrids across the country
October 19, 2023
The U.S. Department of Energy (DOE) has earmarked $3.46 billion for 58 projects spanning 44 states aimed at fortifying the resilience and reliability of the nation’s electric grid. The initiatives, underpinned by the Bipartisan Infrastructure Law, will leverage a total investment of over $8 billion from both federal and private sources.
The overarching goal is to provide affordable, clean electricity to all Americans and ensure that communities nationwide have a dependable grid capable of withstanding extreme weather events, increasingly exacerbated by the climate crisis.
The projects will collectively facilitate the introduction of more than 35 GW of new renewable energy capacity and the establishing of 400 microgrids.
U.S. Secretary of Energy Jennifer M. Granholm said, “Today’s announcement represents the largest-ever direct investment in critical grid infrastructure, supporting projects that will harden systems and improve energy reliability and affordability.”
The announcement represents the initial selection of projects under the broader $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) Program. Notably, the selected projects adhere to the Justice40 commitments, and a striking 86% either involve labor union partnerships or anticipate collective bargaining agreements.
The selected projects span multiple states:
- In Georgia, the Environmental Finance Authority and the Family of Companies supporting the state’s electric cooperatives will embark on a transformative project with an estimated investment of over $507 million. This project entails a comprehensive smart grid infrastructure upgrade, investments in battery storage, local microgrids, grid reliability improvements, and new transmission lines, primarily benefiting remote, underserved, and historically underinvested communities.
- In Louisiana, two projects will bolster disadvantaged communities’ resilience to extreme weather. One project is a statewide strategic initiative involving 15 government entities, energy companies, and community and academic institutions to enhance emergency response operations by deploying a network of Community Resilience Hubs powered by distributed energy resources microgrids. These microgrids can operate independently or integrate with utility-owned electric grid infrastructure and backup generation assets. A separate project by Entergy New Orleans will enhance local grid resilience by hardening existing transmission lines and distribution systems to reduce outage frequency and duration. It will also deploy a battery backup system to lower energy bills for disadvantaged communities.
- In Michigan, DTE Energy will deploy adaptive networked microgrids, which can adapt to changing real-time energy supply and demand conditions, especially following extreme weather events. The microgrids will utilize new grid sensing and fault location devices and communication tools to enhance reliability and reduce the number and duration of outages in microgrid areas. Consumers Energy will undertake critical infrastructure investments in historically underinvested communities to enhance reliability and redundancy.
- In Pennsylvania, PECO Energy Company will increase grid reliability and resilience through substation flood mitigation, enhanced underground monitoring and control technologies, battery systems for backup power, infrastructure replacement, and advanced conductors to boost grid capacity. In eastern Pennsylvania, PPL Electric Utilities Corporation will integrate distributed energy resources, enabling real-time grid control to reduce outage duration and frequency and enhance electric service reliability for more than 800,000 people. In Pittsburgh, Duquesne Light Company will expand system capacity to accommodate clean energy generation, meet state climate targets, mitigate customer cost increases, generate high-quality job opportunities and training, and improve equitable access to clean energy.
- In Oregon, multiple projects will connect substantial clean energy resources to customers and create well-paying union jobs. The Confederated Tribes of Warm Springs Reservation of Oregon and Portland General Electric (PGE) will enhance transmission capacity to connect customers with renewable resources east of the Cascade Mountains, including those on the Warm Springs Reservation. This initiative is projected to provide access to up to 1,800 MW of carbon-free solar resources. PGE will also deploy an artificial intelligence-enabled grid-edge computing platform to enhance the connection of distributed energy resources, such as solar, and employ informed modeling to predict pre-outage conditions and aid real-time decision-making. Additionally, PacifiCorp will update infrastructure to enhance fire resistance and prevention in Oregon and neighboring states, reducing outages and risks.
The announcement also encompasses several projects based on inter-regional collaboration, expanding transmission across multiple states. Notable examples include:
- The Joint Targeted Interconnection Queue Transmission Study Process and Portfolio spans Iowa, Kansas, Nebraska, North Dakota, Minnesota, Missouri, and South Dakota. This project aims to coordinate the planning, designing, and construction of five transmission projects across seven Midwest states. It replaces the traditional interconnection study approach with a coordinated, long-range, interregional assessment that studies multiple projects simultaneously, resulting in scalable transmission solutions, new renewable generation, lower energy costs, enhanced community engagement, and workforce development.
- The Wildfire Assessment and Resilience for Networks project involves states such as Arizona, California, Colorado, Idaho, Kansas, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, and Wyoming. Holy Cross Energy, in collaboration with NRECA Research, will launch a wildfire mitigation project, uniting 39 small, rural, not-for-profit electric cooperatives in high-threat areas. The project will enhance network resilience by deploying fire-resistant grid infrastructure, undergrounding lines, or upgrading overhead lines to reduce the risk of catastrophic wildfires and enhance wildfire resilience. Over 75% of the involved project cooperatives are willing to commit to high-quality jobs and local hiring, minimize environmental impact, or allocate benefits to disadvantaged communities.
Recently, the U.S. Department of Agriculture announced nearly $11 billion in funding to help bring affordable renewable energy to rural communities nationwide.
In February, the DOE announced $2.5 billion in funding for two carbon management programs to significantly mitigate the carbon emissions from power generation and hard-to-abate industrial operations.