As per independent estimates, the country has to expand its power transmission systems by 60% by the end of this decade and possibly increase its present capacity by three folds by 2050 to accommodate the quickly growing supply of cheaper, cleaner energy and meet rising power demand
Biden-Harris Administration offers $13bn funding to modernise and expand electric grid. (Credit: Scott from Pixabay)
The US government has announced a funding boost of $13bn for modernisation and expansion of the country’s electric grid through the Grid Resilience Innovative Partnership (GRIP) programme and the ‘Transmission Facilitation Program’.
The new financing opportunities will be awarded by the US Department of Energy (DOE) for states, utilities, and tribes to improve the ability of the power grid to bring cleaner and more reliable electricity to consumers.
According to the DOE, the programme will be funded by President Joe Biden’s Bipartisan Infrastructure Law. It is one of the first down payments of an investment of more than $20bn under the Biden-Harris Administration’s Building a Better Grid Initiative, which was launched in January 2022.
US Secretary of Energy Jennifer Granholm said: “We are moving swiftly to deliver cleaner, cheaper energy to every American community by building a modern and reliable electric grid.
“With nearly 70% of the nation’s grid more than 25 years old, the President’s agenda is making historic investments that will strengthen the nation’s transmission grid to drive down energy costs, generate good-paying jobs, and help keep the lights on during extreme weather events.”
The DOE said that as per independent estimates, the US has to expand power transmission systems by 60% by the end of this decade. The country could also need to increase its present capacity by three folds by 2050 to accommodate the quickly increasing supply of cheaper, cleaner energy and meet rising power demand.
The GRIP Program offers $10.5bn in financing opportunities to improve grid flexibility and boost the resilience of the power system against increasing threats of extreme change in weather and climate.
The funding programme will deliver projects focussed on the $2.5bn Grid Resilience Utility and Industry Grants fund, $3bn Smart Grid Grants, and the $5bn Grid Innovation Program.
On the other hand, the Transmission Facilitation Program will provide up to $2.5bn to accommodate the construction of high-capacity transmission lines that take an innovative approach.
Overall, the fund is aimed to help overcome the financial challenges faced by large-scale new transmission lines, upgrades of existing transmission lines, and, the establishment of microgrids in certain states and territories.