US DOE announces $1.5B to support 4 large-scale power grid projects

The Biden administration on Oct. 3 announced it will provide nearly $1.5 billion to support four large-scale power lines through a US Department of Energy program designed to help bring riskier transmission projects to fruition.

If completed, the four planned lines would amount to nearly 1,000 miles of new transmission development and accommodate up to 7,100 MW of new generation capacity throughout Louisiana, Maine, Mississippi, New Mexico, Oklahoma and Texas.

The DOE's Transmission Facilitation Program, created under the 2021 bipartisan infrastructure law, allows the department to act as an anchor tenant by purchasing capacity on proposed transmission lines using a $2.5 billion revolving fund. The DOE then sells its capacity to new transmission customers and reinvests the proceeds in other grid expansion projects.

"Like many things about the clean energy transition, building new transmission is extremely challenging, and it's also extremely urgent," DOE Deputy Secretary David Turk said during an Oct. 2 media call.

Southern Spirit transmission project

One of the selected projects — Pattern Energy Group LP's 320-mile, 525-kV Southern Spirit transmission line — would enable 3,000 MW of bidirectional high-voltage, direct-current (HVDC) capacity between the Electric Reliability Council of Texas Inc. and the Midcontinent ISO systems, located in the Eastern Interconnection.

A recent study by the North American Electric Reliability Corp. found that the ERCOT system only has about 820 MW in summer and winter peak transfer capability with the Eastern Interconnection.

Southern Spirit would begin in Louisiana at the Texas border and extend into Mississippi. The project initially received Federal Energy Regulatory Commission approval under its former name, Southern Cross, in 2014 and approval from Texas utility regulators roughly two years later.

In August, the Louisiana Public Service Commission voted 3-2 to accept an administrative law judge's recommendation to certify Southern Spirit. The narrow approval came months after Louisiana Gov. Jeff Landry signed Senate Bill 108, a state law that prohibits transmission developers from expropriating land unless most of the electricity transmitted on their facilities goes to end-users within Louisiana.

If fully approved, Southern Spirit could commence construction in 2026 and enter commercial operation in 2029, according to Pattern Energy. The company plans to invest $2.6 billion in Southern Spirit and is eligible for up to $360 million in DOE financing support.

Southline transmission project

The DOE selected the second phase of the 278-mile Southline transmission project for a capacity contract award of up $352 million.

The 345-kV project is being co-developed in two phases by independent transmission developer Grid United LLC and Black Forest Partners LP. The first phase — connecting transmission facilities in Afton, N.M., and Apache, Ariz. — was one of three projects selected by the DOE in October 2023 for up to $1.3 billion in an initial round of capacity awards.

Southline's second phase includes 108 miles of alternating current line expected to deliver 1,000 MW of bidirectional capacity in New Mexico between Hidalgo County and Las Cruces. Once complete, the full Southline project will connect the electric transmission systems serving the broader El Paso, Texas, and Tucson, Ariz., metropolitan areas.

The project is fully permitted under the National Environmental Policy Act, with New Mexico and Arizona state approvals also secured. The first phase could commence commercial operation by the end of 2027 and the second phase could be placed into service by the end of 2028, according to the developers.

Cimarron Link project

The DOE also selected Invenergy LLC's 400-mile Cimarron Link project for up to $306 million in financing support. The HVDC line would carry up to 1,900 MW of primarily wind and solar energy from the Oklahoma panhandle to growing population centers in the eastern part of the state and elsewhere in the Southwest Power Pool region.

Cimarron Link's proposed route falls within a Delta-Plains national-interest electric transmission corridor proposed by the DOE in May. However, Invenergy noted in an Oct. 3 statement that the DOE's Transmission Facilitation Program is not associated with the DOE's corridor designation process.

Invenergy said it presented a community benefits plan with approximately $10 million for affected Oklahoma communities as part of the company's application with the DOE. Cimarron Link will also generate more than 3,600 construction jobs and over 20 permanent jobs, Invenergy said.

"The strong support for this project at the local, state, and national level reflects the critical need this grid investment serves for Oklahoma," said Shashank Sane, Invenergy executive vice president and head of transmission.

Cimarron Link could reach commercial operation by 2028 following a two- to three-year construction period, according to Invenergy.

Aroostook Renewable Project

The DOE announced Avangrid Inc. was selected for up to $425 million in financing support for the 1,200-MW Aroostook Renewable Gateway project in Maine.

The selection comes as the Maine Public Utilities Commission seeks new bids from transmission developers to carry 1,000 MW of wind power from the northern part of the state to the ISO New England grid.

The approximately $2.8 billion Aroostook project was halted by state utility regulators in December 2023 after the developer, LS Power Grid Maine, a subsidiary of LS Power Development LLC, declined to hold the project to original cost commitments.

Avangrid said Oct. 3 that it intends to participate in the Maine PUC's upcoming request for proposals and will include the $425 million in DOE financing support in its submission.

The Aroostook project involves the construction of 111 miles of 345-kV alternating current line between a new substation in Haynesville, Maine, and an existing substation in Pittsfield, Maine. The project also includes a new 38.5-mile, 345-kV overhead line to connect the Pittsfield substation to an existing Coopers Mills substation in Windsor, Maine.