Administration Invests $1.5B to Bolster the Nation’s Electricity Grid
WASHINGTON — The Department of Energy will invest $1.5 billion in four transmission projects intended to improve grid reliability, reduce transmission congestion and open access to affordable energy to millions of Americans across the country.
In addition, the department on Friday released the final draft of its National Transmission Planning Study, a set of long-term planning tools and analyses that examine a wide range of potential future scenarios through 2050.
The study identifies pathways to maintain grid reliability, increase resilience and reduce costs, while meeting local, regional, interregional and national interests, and supporting the changing energy landscape.
Supported by the bipartisan infrastructure law and administered through DOE’s Grid Deployment Office, the projects selected for the Transmission Facilitation Program will enable nearly 1,000 miles of new transmission development and 7,100 MW of new capacity throughout Louisiana, Maine, Mississippi, New Mexico, Oklahoma and Texas.
Along the way, department officials said, the work on the projects will result in the creation of nearly 9,000 good-paying jobs.
“The U.S. transmission network is the backbone of our nation’s electricity system,” said DOE Deputy Secretary David Turk in a written statement.
“Though our grid has served U.S. energy needs for more than a century, our country’s needs are changing,” Turk continued. “DOE’s approach to deploying near-term solutions and developing long-term planning tools will ensure our electric grid is more interconnected and resilient than ever before, while also supporting greater electricity demand.”
The four projects sharing in the funding announced Friday are:
- The Aroostook Renewable Project, which entails building a new substation in Haynesville, Maine, and raising a 111-mile transmission line with a capacity of 1,200 MW to connect the new substation to the Independent System Operator-New England system at a substation in Pittsfield, Maine.
- Cimarron Link is a 400-mile high-voltage direct-current transmission line from Texas County, Oklahoma, to Tulsa, Oklahoma. The line will transmit 1,900 MW of firm, point-to-point capacity to deliver low-cost wind and solar energy to growing load centers in eastern Oklahoma and elsewhere in the Southwest Power Pool.
- Southern Spirit will construct a new 320-mile HVDC line connecting the Electric Reliability Council of Texas grid for the first time with electric grids in the southeastern U.S. power markets, including Midcontinent Independent System Operator South and Southern Company, which will enhance reliability and prevent outages during extreme weather events.
- The Southline project will construct a new 108-mile transmission line that will deliver 1,000 MW of new, bidirectional capacity between Hidalgo County, New Mexico, and Las Cruces, New Mexico.
Though transmission planning usually happens at the local or regional level, the new National Transmission Planning Study argues that grid reliability can be maintained at the lowest cost with the highest level of reliability by coordinating interregional transmission.
The NTP Study was developed in partnership with the National Renewable Energy Laboratory and the Pacific Northwest National Laboratory to be used as a long-term planning tool. Key takeaways include:
- A substantial expansion of the transmission system throughout the entire contiguous United States will deliver the largest benefits and could lead to national electric system cost savings of $270 billion – $490 billion through 2050.
- Significant return on investment, with every dollar spent on transmission meaning approximately $1.60 to $1.80 in system costs are saved.
- When transmission regions coordinate to achieve resource adequacy, system costs through 2050 are lowered by $170 billion – $380 billion.
The NTP Study also identifies potential opportunities for industry planners to consider projects that would benefit customers under a wide range of future scenarios.
The findings and tools will be explored in a public webinar on Wednesday, Oct. 16, from 3:15 p.m. to 4:30 p.m. Those interested in participating can register here.
Dan can be reached at [email protected] and @DanMcCue
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