DOE Opens Up $9 Billion in Funding for Grid Upgrades
The Department of Energy will invest about $1.9 billion to speed up improvements to the U.S. electrical grid, it announced on Thursday (POLITICO Pro, subscription).
What’s going on: Projects chosen via the funding mechanism, which is called Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK), “would invest in grid upgrades at a time the Trump administration is confronting rising electricity demand and concerns over resource adequacy.”
Why it’s necessary: U.S. demand for power is expected to increase in the coming years due to fast growth in artificial intelligence and data centers.
- The funding announced Thursday will help “stabilize and optimize grid operations to strengthen it for rapid growth,” said Katie Jereza, assistant secretary for the Office of Electricity, in a statement, according to POLITICO Pro.
Who will get the money: Projects chosen to receive funding must demonstrate “reconductoring,” or their ability to replace existing power lines with higher capacity conductors, “paired with other technologies that can expand grid capacity and increase operational efficiency.”
- Concept papers from potential funding recipients are due April 2, with full applications due May 20.
- The DOE plans to make selections in August.
Our view: The project aligns with a longtime NAM priority and key part of “ Building to Win,” the NAM’s recently launched national infrastructure campaign: grid resilience.
- The campaign calls for policies that “[a]ccelerate construction of needed energy infrastructure by … ensuring federal coordination with states and localities interconnecting new electric transmission and distribution lines.”
The final word: “Along with responsible national and local policies for new electrical transmission and distribution infrastructure, the NAM supports investing in reconductoring and other grid efficiencies as a key short-term policy solution to get manufacturers the affordable, reliable power they need to continue investing and growing in America,” said NAM Vice President of Domestic Policy Chris Phalen.