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DOE announces $4.5 billion funding for upcoming transmission projects

DOE Announces 10 Potential Corridors for New High-Voltage Transmission Lines to Support Renewable Energy Transition

The Department of Energy (DOE) recently announced 10 potential corridors for new high-voltage transmission lines on May 8, with the goal of bringing renewable energy from areas where it’s generated to centers of demand and providing stability to local grids. These proposed lines were strategically chosen to help update the grid for the energy transition by mitigating the risk of supply interruptions from intermittent wind and solar power.

Secretary of Energy Jennifer Granholm emphasized the importance of modernizing the power grid, which is over a century old. The authority to designate each corridor as a National Interest Electric Transmission Corridor (NIETC) was established under the 2005 Energy Policy Act and further solidified in the 2021 Bipartisan Infrastructure Law.

If these lines are built, they could provide business leaders and sustainability professionals with greater grid reliability and more choice in decarbonizing their electricity sources. Additionally, they could boost wind and solar projects that have stalled due to the lack of firm purchase agreements, potentially lowering barriers to entry for adjacent infrastructure like grid-scale battery storage.

However, there are potential barriers to the implementation of these new corridors. Designation as a “national interest” project unlocks federal siting and permitting authority, but ambitious transmission projects have faced pushback from landowners and local governments in the past. FERC is finalizing new backstop siting rules to address these challenges.

The announcement of the proposed corridors opens a 45-day window for public commentary, allowing utilities, project developers, and other stakeholders to submit remarks on the potential impact and risks of the preliminary list. The DOE has also released eligibility criteria for the Transmission Facility Financing program and made funds available for public-private partnership proposals in the Transmission Facilitation Program.

Overall, the DOE’s initiative to modernize the grid and facilitate the transmission of renewable energy is a significant step towards a more sustainable energy future. It will be interesting to see how stakeholders engage with the proposed corridors and how the grid modernization efforts progress in the coming months.
The Department of Energy (DOE) has announced 10 potential corridors for new high-voltage transmission lines to bring renewable energy to areas of demand and stabilize local grids. These corridors were chosen to update the grid for the energy transition and mitigate the risk of supply interruptions from intermittent wind and solar power. Secretary of Energy Jennifer Granholm has the authority to designate these corridors as National Interest Electric Transmission Corridors (NIETC) under the amended Federal Power Act. The construction of these lines will provide greater grid reliability, more choice for companies seeking to decarbonize their electricity, and boost wind and solar projects that have stalled due to lack of firm purchase agreements.

However, potential barriers to the construction of these lines include legal challenges from landowners and local governments, as well as pushback from states. To address these challenges, FERC is finalizing new backstop siting rules to be used if a state regulator denies or fails to act on a construction permit application within one year. The announcement of the proposed corridors opens a 45-day window for public commentary, allowing utilities, project developers, and other stakeholders to submit remarks on the potential impact and risks of the list.

In addition to the proposed corridors, the DOE has released minimum eligibility criteria for the Transmission Facility Financing (TFF) program and made funds available for public-private partnership proposals in the Transmission Facilitation Program (TFP). The TFF program provides up to $2 billion in direct loans to cover the credit subsidy cost for NIETC projects.

Overall, the construction of these new transmission lines is a crucial step in modernizing the grid and facilitating the transition to renewable energy sources. By bringing renewable energy from remote areas to centers of demand, these lines will provide greater grid reliability, support decarbonization efforts, and boost stalled wind and solar projects. Despite potential barriers, such as legal challenges and pushback from states, the DOE is taking steps to address these challenges and move forward with grid modernization.
The Department of Energy announced 10 potential corridors for new high-voltage transmission lines to bring renewable energy to areas of demand and stabilize local grids. These locations were chosen to update the grid for the energy transition and mitigate supply interruptions from wind and solar power. Secretary of Energy Jennifer Granholm has the authority to designate these corridors as National Interest Electric Transmission Corridors under the Bipartisan Infrastructure Law.

Granholm stated that the aging power grid needs updating, and the new corridors will provide greater grid reliability and choice for businesses seeking to decarbonize their electricity. The lines will also boost wind and solar projects that lack firm purchase agreements, potentially lowering barriers to entry for infrastructure like grid-scale battery storage. However, legal challenges and opposition from states and local governments may hinder the progress of these projects.

To address potential barriers, FERC is finalizing new backstop siting rules in case state regulators deny construction permit applications. The 2021 infrastructure law limits states’ ability to block grid upgrades, and FERC’s new rules are expected to be announced on May 13. Despite opposition, the DOE’s announcement of the 10 proposed corridors opens a 45-day window for public commentary, allowing stakeholders to submit remarks on the potential impact and risks of the preliminary list.

In addition to the new corridors, the DOE released minimum eligibility criteria for the Transmission Facility Financing program and made funds available from public-private partnerships proposals in the Transmission Facilitation Program. The transmission financing program provides up to $2 billion in direct loans to cover the credit subsidy cost for NIETC projects, aiming to support the development of high-voltage transmission lines for renewable energy.

The Department of Energy (DOE) announced 10 potential corridors for new high-voltage transmission lines on May 8, designed to bring renewable energy from areas where it’s generated to centers of demand and to provide stability to local grids. 

The locations of the proposed lines were chosen to help update the grid for the energy transition by mitigating the risk of supply interruptions from intermittent wind and solar power.

“At more than a century old, our power grid is showing its age,” said Secretary of Energy Jennifer Granholm in a statement released by DOE.

Granholm has the authority to designate each corridor as a National Interest Electric Transmission Corridor (NIETC) under the amended Federal Power Act, in the 2021 Bipartisan Infrastructure Law. That authority was first established under the 2005 Energy Policy Act. 

If the lines get built, they’ll give business leaders and sustainability professionals seeking to decarbonize their electricity greater grid reliability and more choice, by bringing renewable energy generated in remote areas to where companies need it. They should also boost wind and solar projects that have stalled due to the lack of firm purchase agreements.  

In theory, this will start a domino effect, lowering the barriers to entry for adjacent infrastructure, such as grid-scale battery storage. 

Potential barriers

Designation as a “national interest” project unlocks federal siting and permitting authority from the Federal Energy Regulatory Commission (FERC) in certain circumstances, and the 2021 infrastructure law addresses and limits states’ ability to block such grid upgrades. Several ambitious transmission projects have stalled or collapsed in recent years due to pushback from landowners and local governments, and it’s likely that the new corridors will face legal challenges. 

Already, 23 states have sued the federal government over new regulations from the EPA that would enforce limitations on carbon emissions, beginning in 2032. 

To overcome such opposition, FERC is finalizing new backstop siting rules to be used should a state regulator deny or fail to act on a construction permit application within one year. FERC’s new rules are expected to be announced May 13.

Moving forward with grid modernization

The announcement of the 10 proposed corridors opens a 45-day window for public commentary. Utilities, project developers and other stakeholders can submit remarks regarding the potential impact and risks of the preliminary list. 

In addition to the new corridors, the DOE also released the minimum eligibility criteria to participate in the Transmission Facility Financing (TFF) program and made available  funds from the public-private partnerships proposals in the Transmission Facilitation Program (TFP).

The transmission financing program provides up to $2 billion from the Inflation Reduction Act in direct loans to cover the credit subsidy cost — the costs of loans provided for NIETC projects.  

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