Deep Green Pockets: US Power Grid Needs a $2.2 Billion Overhaul

Thanks to the DOE’s hefty investment, America’s aging power grid can get a shiny new makeover, setting the US on a greener path forward. 

Some Hefty Funds 

Those concerned about the power grid in the United States being unable to handle the growing energy demand can sleep a bit more peacefully after Tuesday. 

Because that’s when the U.S. Department of Energy (DOE) announced its $2.2 billion investment to give the grid a proper upgrade.

Going Greener 

These grants from the DOE will not only help the power grid withstand the growing threats of extreme weather events, but will also help steer the transition to cleaner electricity. 

Benefits All Around 

As US Secretary of Energy, Jennifer Granholm stated: “The Biden-Harris Administration is investing in the most crucial component of the nation’s infrastructure, expanding and hardening the grid to allow more resilient, clean power to reach more household, and support the ongoing manufacturing boom—all while creating thousands of local jobs.” 

What Are the Details? 

Thanks to these funds, construction of more than 600 miles of new transmission lines can begin, as well as the upgrading of approximately 400 miles of existing lines, helping them to transport a greater amount of current. 

Powering up the USA 

In the statement released by the DOE, upgrades to the US power grid will include adding almost 13 gigawatts (GW) of additional capacity.

These improvements will also facilitate increased manufacturing capabilities, the establishment of more data centers, and the enhanced transmission of renewable energy. 

For New England 

In total, eight projects scattered over 18 states are expected to benefit. 

One of them will be an initiative in New England, which aims to upgrade the onshore connection points for power produced via offshore wind turbines. 

This will facilitate an extra 4,800 megawatts of wind energy, which is sufficient to supply power to about 2 million households. 

To Montana 

$700 million will be allocated to the Montana Department of Commerce. 

The majority of these funds will be used to construct a 415-mile, high-voltage, direct-current transmission line that will connect Montana with its neighboring state North Dakota. 

And Also Virginia 

The Virginia Department of Energy is set to receive $85 million, which will be used to implement clean electricity and sustainable backup power solutions at two data centers: one located in Virginia and the other in South Carolina. 

This Isn’t Cheap 

According to electric utilities, a substantial amount of work (and money) is needed to boost the reliability of the US power grid – more than what was spent in previous decades. 

Weather Wreaking Havoc 

This is not only because of an increase in demand for power, but also due to the rising share of renewable energy, plus harsh weather events like hurricanes and heatwaves occurring more often, which is taking its toll on the power grid. 

Expected to Worsen 

Referring to the damage that harsh weather fueled by climate change has inflicted upon the grid in recent years, Granholm also added: “The first half of 2024 has already broken records for the hottest days in Earth’s history, and as extreme weather continues to hit every part of the country, we must act with urgency to strengthen our aging grid.”

A Recent Catastrophe 

Hurricane Beryl is an excellent example. After hitting Texas on July 8th, the storm cut off power to almost 3 million customers.

And as stated by officials, at least a dozen people in the Houston area lost their lives due to the power outages as well as heat-related complications. 

Let There Be Light 

Thanks to these grants, more reliable and affordable power can be generated for 56 million homes and businesses across the US, as stated by the DOE. 

Record-Breaking Funds 

According to Granholm, these grants make up the single, biggest direct funding in the history of the United States’ power grid. 

During a press call to announce the funding, she added: “They’ll help us to meet the needs of electrified homes and businesses and new manufacturing facilities and all of these growing data centers that are placing demands on the grid.”

Technology Takes a Toll 

Utilities and regulatory bodies in the US have made substantial increases in their projections for peak power demand over the next ten years. This was due to both anticipating a rapid rise in electricity consumption driven by data centers and emerging technologies like generative AI. 

Time to Pay Up 

Funds that were withheld in recent years have now become critically necessary to rectify reliability challenges afflicting the grid and to boost the transmission infrastructure, ensuring it can meet rising demand and integrate a greater amount of solar- and wind energy into the system. 

Can They Catch Up? 

When speaking to The Wall Street Journal last month, Chief Executive at Avangrid, Pedro Azagra, said: “The problem that we have right now comes from decades of lack of investment.”

Adding that Avangrid has increased its spending to tackle issues related to grid reliability, Azagra acknowledged: “You cannot catch up in one minute.”   

Doing the Right Thing 

According to Max Luke, director of business development and regulatory affairs at VEIR: “These investments are certainly a step in the right direction and they are the right types of investments.”

VEIR is a Massachusetts-based, early-stage company focused on producing transmission lines that can handle five times the capacity of traditional lines. 

Small, Yet Significant 

Luke also added: “If you look at the scale of the challenge and the quantity of grid capacity needed for deep decarbonization and net zero, it’s a drop in the bucket.” 

But That’s Not All 

This $2.2 billion grant is the second leg that forms part of a $10.5 billion DOE program known as Grid Resilience and Innovation Partnerships, which was sponsored via the Bipartisan Infrastructure Law of 2021.

Additional projects are set to be announced as early as fall.

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