US DOE announces $2B for projects, expected to boost grid capacity by 7.5 GW

The US Energy Department announced $2 billion in grid resilience and innovation awards for nearly three dozen projects, expected to boost US electric transmission capacity by 7.5 GW.

The Oct. 18 announcement marks the second round of grant funding under the DOE's $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) program, an initiative created by the 2021 bipartisan infrastructure law.

To date, the DOE has announced a cumulative $7.6 billion in funding for 104 projects through the GRIP program.

The latest round of funding, spread across 32 projects, spanning 42 states and Washington, DC, will go toward 300 miles of new transmission, along with reconductoring or adding grid-enhancing technologies to over 650 miles of existing transmission, the DOE said in a news release.

Award recipients include the Tennessee Valley Authority and Southern Co. subsidiary Georgia Power Co., two of six utilities affected by Hurricanes Helene and Milton that were selected by the DOE for up to $612.4 million in cumulative grant funding.

"The devastating and deadly Hurricanes, Helene and Milton, have put on stark display how extreme weather events continue to stress the nation's aging electric systems -- but across the country, the Biden-Harris administration is using every tool in the toolbox to make sure America's power grid is hardened in the face of this challenge," Energy Secretary Jennifer Granholm said in a statement.

The TVA said in a news release that its $250 million grant will boost grid capacity in its service territory by up to 2.4 GW and create the first interconnection tie between the TVA and the neighboring Southwest Power Pool system. The TVA added that the project funding will expedite the interconnection of "thousands of megawatts" of solar capacity and up to 800 MW of wind power.

Other recipients in the third round of GRIP funding include Arizona Public Service Co., which is set to receive $70 million for wildfire mitigation measures and smart grid technology investments.

Entergy Corp. subsidiary Entergy Texas Inc. was selected to receive $53.8 million for grid-strengthening projects at approximately 950 distribution structures in Port Arthur, Texas, to reduce power interruptions during extreme weather events.

In addition, a consortium of 12 rural electric cooperatives led by Georgia Transmission Corp. was selected for $97.9 million to support a range of projects calling for new builds, rebuilds or reconductoring.

The DOE said award negotiations for the second round of GRIP funding will start immediately, with a third round to follow in 2025. The second round drew applications for seven times the amount of funding available, "demonstrating the tremendous need for these types of investments across the country," the DOE said.