WASHINGTON — The Biden administration has announced initiatives worth over $8 billion to bolster the U.S. power grid as part of the infrastructure improvements needed to expand the use of alternative energy.
The core initiatives provide more than $8 billion of Energy Department financing for new high-voltage transmission lines. In addition, the White House said it was issuing new guidance to states on how to remove obstacles to the construction of new power lines along highways, railroads and other rights of way.
President Biden has backed new electric transmission capacity as a way to boost low-carbon energy supply by connecting the often remote hot spots for wind and solar power to more populated areas.
The agency’s loan program will be the main source of investment money. It is seeking applications for up to $5 billion in loan guarantees for projects that might transport direct current, connect to offshore wind farms or be sited along railroads and highways, the White House said.
The Western Area Power Administration, a federally owned utility, is also relaunching an infrastructure program with $3.25 billion for transmission.
The Transportation Department is issuing guidance on rights of way along highways. It aims to help state agencies host transmission lines and other infrastructure within existing rights of way.
Americans for a Clean Energy Grid, a coalition including utility owners, renewable-energy companies and environmental groups that advocates for more high-capacity transmission, issued a report Tuesday identifying 22 “shovel ready,” high-voltage transmission projects nationwide that have stalled.
The group, which has been working with the White House, said the projects would be more likely to start construction if the federal government made several policy changes, including streamlining permitting, approving new tax credits or direct federal investment.
Source: The Wall Street Journal