US stumps up $1.5bn for tough-to-build green power lines

The U.S. Department of Energy (DoE) has announced $1.5 billion in funding for four interregional power lines as part of its Transmission Facilitation Program (TFP), aiming to drive investment in new grid infrastructure to support the influx of clean energy in the coming years. According to research from Wood Mackenzie, the U.S. grid requires $80 billion to $100 billion in upgrades and new lines to meet the Biden administration’s goal of achieving a 100% clean power system by 2035.

“Building transmission projects is essential for addressing the climate crisis,” said John Podesta, the White House national climate adviser.

While renewable energy installations are booming due to tax incentives provided by the Inflation Reduction Act and other legislation, the aging and inadequate power grid remains a significant barrier to bringing these clean energy assets online.

Under the TFP, the DoE commits to purchasing up to 50% of the capacity of selected transmission lines, which it will later sell when market demand materializes. “DoE buys capacity on the lines and sells it back. When new customers arrive, we recover our funding, reinvest in new projects, and the cycle continues,” explained David Turk, deputy secretary of energy.

However, funding alone won’t resolve the transmission bottleneck. Podesta stressed the need to streamline the permitting process, which has historically been plagued by delays at federal, state, and local levels. “We must cut through red tape to ensure the timely deployment of clean energy infrastructure, particularly transmission,” he added.