Biden's transmission money flows
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The Energy Department plans to invest $1.5 billion to stake four transmission projects that support nearly 1,000 miles of lines.
Why it matters: It's among the biggest Biden-era efforts to get power delivery projects across the finish line — a notoriously tough thing!
Driving the news: DOE just unveiled new selections through a recently created revolving fund that lets it directly contract for power capacity.
- The agency, under the 2021 infrastructure law, can resell it to replenish the fund.
- David Turk, DOE's No. 2 official, told reporters it boosts projects "that would otherwise not get built."
State of play: The preliminary new contract selections through the Transmission Facilitation Program:
- Southern Spirit, a 320-mile project to connect the rather isolated Texas grid (ERCOT for you wonks) to southeastern power markets.
- Phase 2 of Southline, which will build 108 miles of new lines in New Mexico.
- Cimarron Link, a 400-mile project in Oklahoma to connect wind and solar to areas of growing power thirst there and other southwestern areas.
- The Aroostook Renewable Project, a 111-mile line and substation project to help get power from northern Maine to other New England regions.
The big picture: U.S. power demand is rising after staying largely flat for 15 years, and new transmission helps bring renewables to population centers.
- The newly selected projects will help enable over 7 gigawatts of new power-generating capacity in Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas, DOE said.
- They will also create over 9,000 jobs, the agency said.
Threat level: Extreme weather like wildfires and Hurricane Helene's devastation show the need for more resilient grids — including more transmission, officials told reporters.
- For instance, Southern Spirit will help bolster Texas' system against crises like outages during 2021's Winter Storm Uri, DOE said.
How it works: The federal contracts are meant to give investors confidence by having the government as an anchor customer.
- It's part of a constellation of power sector subsidies and incentives in the 2021 law and the IRA.
- They're aimed at cutting emissions and making aging grids more durable.
Overall, the Biden era has brought "permitting approvals or announced financing support" for over 5,000 miles of lines, White House climate aide Ali Zaidi told reporters.
Catch up quick: The first selections under the revolving fund arrived nearly a year ago.
Yes, but: The federal and state permitting maze remains tricky, despite efforts at several agencies, like FERC's recent transmission planning rule.
- DOE's push for more transmission includes a federal study out today.
- It finds a major nationwide buildout could bring hundreds of billions of dollars in power system cost savings through 2040.
What we're watching: Bipartisan permitting bills are rattling around Capitol Hill, but deal prospects this year — as our colleagues at Pro Energy have reported — are dicey.
Daniel Moore contributed
