Biden Administration Announces $1.3 Billion Investment to Expand Electric Transmission Across Six States

https://icaro.icaromediagroup.com/system/images/photos/15848088/original/open-uri20231030-56-1o1tphs?1698696006
ICARO Media Group
Politics
30/10/2023 19h58

COCHISE, ARIZONA - The Biden-Harris Administration has unveiled a major commitment to enhance the nation's electric transmission infrastructure, with a $1.3 billion investment in three transmission lines spanning six states. This significant funding, made possible by President Biden's Bipartisan Infrastructure Law, aims to add 3.5 gigawatts (GW) of additional grid capacity, equivalent to powering approximately three million homes. The project is expected to create over 13,000 direct and indirect jobs, while advancing the administration's climate agenda and increasing access to affordable clean energy.

The U.S. Department of Energy (DOE), responsible for implementing this initiative, simultaneously released the final National Transmission Needs Study (Needs Study). This comprehensive study provides valuable insights into areas where increased transmission could benefit both the grid and American communities. The combination of the investment and the Needs Study aligns with the Biden-Harris Administration's commitment to combat the climate crisis and achieve a net-zero emissions economy by 2050.

U.S. Secretary of Energy Jennifer M. Granholm stated, "To realize the full benefit of the nation's goal of 100% clean electricity by 2035, we need to more than double our grid capacity, and President Biden's Investing in America agenda puts us in a position to do just that." Granholm also highlighted the importance of strengthening the nation's transmission network to lower costs for households and support American workers, particularly in the face of climate change-induced extreme weather events.

The Needs Study indicates that by 2035, regional transmission capacity must more than double, with interregional transmission capacity needing to increase by over fivefold in order to achieve economy-wide decarbonization. These requirements will increase significantly by 2050. The DOE's three-pronged approach to expanding and modernizing critical electric infrastructure includes enhanced transmission planning, strengthened permitting processes, and the provision of financial tools to support deployment.

Under the funded Transmission Facilitation Program, a $2.5 billion revolving fund established by the Bipartisan Infrastructure Law, DOE is entering into capacity contract negotiations with three interregional transmission line projects. These projects will enhance grid resilience and reliability, enable the integration of more clean energy resources, and provide diverse, clean energy to a broader customer base.

The selected projects include:
1. Cross-Tie 500kV Transmission Line (Nevada, Utah): This proposed 214-mile line will connect existing transmission systems in Utah and Nevada, improving transmission capacity, grid reliability, and resilience. It will also contribute to increased access to low-cost renewable energy in the region. Construction is expected to begin in Q1 of 2025.

2. Southline Transmission Project (Arizona, New Mexico): The proposed 175-mile transmission line will help unlock renewable energy development in southern New Mexico and deliver clean energy to growing markets in Arizona. Construction is anticipated to commence in Q1 of 2025.

3. Twin States Clean Energy Link (New Hampshire, Vermont): This 1,200 MW high-voltage direct current (HVDC) transmission line will expand the capacity of the New England electric grid, improve resiliency, and provide access to clean firm energy supplies in Quebec, Canada. Construction is expected to start in either Q3 or Q4 of 2026.

The Needs Study also emphasizes the urgent need for additional electric transmission infrastructure to improve reliability, reduce congestion, and lower energy costs across various regions of the country. The study highlights the importance of increasing interregional transmission to meet growing electricity demands and address constraints. It further notes that evolving regional demand, clean energy transitions, and extreme weather events necessitate continual adaptation and investment in the power grid.

While the Needs Study does not designate specific transmission solutions, it will inform future investments and planning decisions. The DOE specifically mentions the potential designation of National Interest Electric Transmission Corridors (NIETCs) and plans to provide further guidance on the process.

On November 8, 2023, the DOE will host an information webinar to review the results of the Needs Study, allowing stakeholders to gain a deeper understanding of the findings and their implications for the future of America's electric transmission infrastructure. Registration is required for the event.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related