The funding will be used to build or upgrade nearly 4,400 transmission-line miles and will generate 6,000 jobs and spur private investment, officials say.
The U.S. Department of Energy (DOE) is issuing a $2 billion tranche of funding for 38 projects across 42 states in the second round of federal incentives designed to buttress the nation’s electric grid resiliency and expand its capacity to generate the power needed to meet increasing demand.
The outlay is from DOE’s $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) Program established under 2021’s $1.2 trillion Infrastructure Investment & Jobs Act, or Bipartisan Infrastructure Law.
The $2 billion in GRIP funding follows the October 2023 release of $3.46 billion for 58 projects across 44 states to “bolster grid resilience and reliability in the face of extreme weather and increased electricity demand,” DOE said in an Oct. 17 announcement.
“The funding couldn’t come at a more critical time because energy demand, as we know, is rising nationwide, and it is straining our outdated grid infrastructure,” DOE Secretary Jennifer Granholm told reporters during an Oct. 16 virtual conference, noting the recent devastating storms, Hurricanes Helene and Milton.
Within those 38 projects is $600 million for six projects in areas hammered by both storms that President Joe Biden announced during an Oct. 13 tour of damage in St. Petersburg, Florida.
Granholm said GRIP is “the single-largest investment in our grid in history, but it’s just really one part of our strategy to improve grid reliance and grid performance” as part of a “whole-of-government” approach to protect and enlarge the nation’s power supply.
She said the $2 billion will build or upgrade more than 4,377 miles of transmission lines, generate “6,000 good-paying jobs” of which more than 80 percent will use International Brotherhood of Electrical Workers union labor.
With the second tranche of funding and other allocations, $7.6 billion of the $10.5 billion has been awarded, Granholm said, spurring “a combined $36.9 billion in public-private funding for grid projects across the country.”
GRIP is adding grid capacity and resiliency by installing new transmission lines, “reconducting existing lines, basically putting twice the power using upgraded materials on existing lines,” installing software to improve interconnection cues, and investing heavily in “undergrounding” power lines, she said.
GRIP will ultimately “add more than 32 Hoover Dams worth of renewable energy to the grid,” Granholm said. “These projects are creating nearly 30,000 good-paying jobs overall, and over 90 million homes and businesses stand to benefit from more resilient, reliable power.”
The secretary noted utilities and transmission operators submitted more than $50 billion in project applications for the awarded $7.6 billion.
“That’s 6 1/2 times what we have available. This clearly demonstrates the tremendous need for grid Investment nationwide,” Granholm said. “So it is historic, but our work is far from over. Demand for grid investment continues to outpace the funding that we have available.”
Senior White House adviser for international climate policy John Podesta said the nation needs to do three things if it is “to double” its electricity transmission capacity by 2035 to meet projected demand.
“First,” he said, “we need to make the kind of investments that DOE is announcing, both the federal dollars, plus the private sector dollars that they will catalyze. These awards will expand both new and upgraded transmission capacity from Arizona and North Carolina, which will get new clean energy projects online faster.”
Second, Podesta said, inter-regional transmission planning “to increase reliability and lower costs” must be improved, and “third, we need to cut through the red tape, which is exactly what we’ve been doing over the past four years.”
In May, he noted, the Federal Energy Regulatory Commission adopted the 1,364-page Order No. 1920 to make transmission develop more efficient interconnections between regional grids.
“And we’re seeing signs of real progress,” Podesta said, “like the Cardinal-Hickory Creek transmission line from Wisconsin to Iowa that was just energized last month after more than a decade of perseverance.”
White House national climate adviser Ali Zaidi said that much of the nation’s 150,000 miles of transmission lines and 6,000 power plants were “built decades ago, if not over 100 years ago,” and that the Bipartisan Infrastructure Law was adopted to address this issue.
“We need our grid better adapted to storms like hurricanes Helene and Milton and other extreme climate disasters like the wildfires out west,” he said, noting that in 2024, “we’ve seen over 20 confirmed $1 billion [in damage] events around extreme climate disasters. And of course, we saw that most pointedly and most recently in the Southeast.”
Zaidi said GRIP is only one component of DOE’s energy development plan. The Bipartisan Infrastructure Law and 2022’s CHIPS & Science Act and Inflation Reduction Act (IRA) incentivize research and development of new types of nuclear power and expand existing capacities, he said.
The IRA, for instance, offers a 30-percent investment tax credit for nuclear projects and $6 billion in loans, grants, and tax credits to keep aging nuclear plants operational and restart those that have shut down.
There are 94 nuclear reactors operating in 55 power plants in the United States that generated 18.6 percent of the nation’s electricity in 2023, according to the U.S. Energy Information Administration.
Most were built between 1970 and 1990 and average more than 40 years in service. Only one new reactor has come online since 2016, Vogtle’s fourth reactor in Georgia, which became operational in April and was $16 billion over budget and six years behind schedule.
“Folks are recognizing what so many of us have been saying from day one, that we have the technologies, we have the workers, we have the wherewithal to meet this new demand with clean electrons, and you’re seeing technology firms pick up those tools and race forward with them,” Zaidi said.
The aim, he said, is “largely investment in electrification” since the 1930s during the Roosevelt administration, especially in rural areas.
Zaidi said a general rule of thumb is it costs $1 million for every new mile of transmission lines built, and every new mile of transmission lines generates between three and four direct jobs and up to a dozen indirect jobs.
“When [Biden] talks about climate, he sees jobs, and this is a great example of how that translates,” he said.