DOE Announces Up to $8.25 Billion in Loans to Enhance Electrical Transmission Nationwide
- Apr 29, 2021 9:49 am GMT
Loans Will Support Projects to Widen Clean Electricity Reach and Enhance Grid Reliability
The Biden Administration has made a commitment to modernize the nation's power grid and infrastructure and deliver 100% clean energy to businesses and homeowners by 2035. In support of this project, the U.S. Department of Energy (DOE) yesterday announced the availability of up to $8.25 billion in loans from its Loan Programs Office (LPO) and the Western Area Power Administration (WAPA) for efforts to expand and improve the nation's transmission grid.
This is one of several announcements related to accelerating efforts to expand and modernize the nation's electrical grid, creating good-paying unions jobs while increasing access to reliable, affordable, clean power.
"DOE is making financing available for projects that improve resilience and expand transmission capacity across the electrical grid, so we can reliably move clean energy from places where it's produced to places where it's needed most," said Secretary of Energy Jennifer M. Granholm. "This is a down payment on our efforts to modernize our transmission nationwide but we need the American Jobs Plan to complete them. These investments will make our power system more resilient against threats and more reliable as we increase our clean energy capacity, creating thousands of jobs in the process."
President Biden's American Jobs Plan calls for historic investments to modernize and upgrade the country's power grid, improving resilience against cyber threats, natural disasters, and physical attacks. This includes expansion and upgrades to transmission lines which are also essential to the administration's goal of reaching 100% clean electricity by 2035. Renewable energy capacity is often generated far away from population centers where demand is highest. Without added transmission capacity, the electricity grid cannot reliably and consistently deliver renewably-sourced power from these points of generation to high demand areas.
As DOE joins federal efforts to increase the grid's renewable energy capacity such as the plan announced last month to add 30 GW of offshore wind energy by 2030 Secretary Granholm has made addressing transmission challenges a key priority. This announcement lays out financial tools that DOE can bring to bear in support of transmission development. Passage of the American Jobs Plan will allow DOE to expand on these resources.
DOE has two separate financing streams available to assist with transmission projects:
Up to $5 billion in loan guarantees from LPO. LPO's Title 17 Innovative Energy Loan Guarantee Program and Tribal Energy Loan Guarantee Program allow DOE to support innovative transmission projects along with transmission projects owned by federally recognized tribal nations or Alaska Native Corporations. This includes high-voltage direct current (HVDC) systems, transmission to connect offshore wind, and facilities sited along rail and highway routes.
Up to $3.25 billion from WAPA's Transmission Infrastructure Program (TIP) revolving loan program. TIP is a unique federal debt financing program, congressionally mandated to support transmission and related infrastructure projects that facilitate the delivery of reliable, affordable, clean power in the Western United States. Applicants can leverage WAPA's technical transmission expertise for project development support and access low-cost capital.
Details on loan guarantees through LPO and application instructions can be found here. Details on loan eligibility through TIP and application instructions can be found here. The full list of announcements around efforts to enhance the electrical grid can be found here.
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.