By Timothy Gardner
WASHINGTON (Multibagger) - In a groundbreaking move, the U.S. government has allocated $1.5 billion in public funding for four electricity transmission projects across the country. These projects aim to enhance the grid's resilience and facilitate the connection of customers to clean energy sources.
The funds, part of the second phase of the Transmission Facilitation Program, are derived from a bipartisan infrastructure law passed in 2021. The investment will support the construction of nearly 1,000 miles (1609 km) of new transmission lines in Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas.
David Turk, the deputy U.S. energy secretary, emphasized the significance of these projects, stating, "We're using it to help large transmission projects get off the ground, projects that otherwise would not get built."
Furthermore, the Department of Energy estimates that these investments will create close to 9,000 jobs, providing a much-needed boost to the economy.
The projects include:
- Aroostook Renewable Project, which will enable New England to access wind power generated in Maine
- Cimarron Link, a 400-mile (644 km) high voltage direct current line from Texas delivering power from wind and solar to eastern Oklahoma
- Southern Spirit, a 320-mile (515 km) line connecting the Electric Reliability Council of Texas grid with grids in the southeastern power markets to enhance resilience during extreme weather events
- Southline, a transmission line bringing wind power from western New Mexico to the desert Southwest
The Energy Department's National Transmission Planning Study underscores the necessity of doubling or tripling transmission capacity by 2050 to meet demand growth and reliability requirements. It also highlights the potential for significant cost savings through transmission expansion and interregional planning.
Overall, these projects represent a major opportunity for investors looking to capitalize on the growing clean energy sector and contribute to the development of a more resilient and sustainable energy infrastructure in the U.S.