U.S. Department of Energy Invests $1.5 Billion in Transmission Projects

Credit: Brett Sayles/Pexels

The U.S. Department of Energy (DoE) has announced a significant investment of $1.5 billion aimed at enhancing the nation's transmission infrastructure. This will support four key projects developed by members of the American Council on Renewable Energy (ACORE), enabling nearly 1,000 miles of new transmission lines and an increase of 7.1 gigawatts (GW) of capacity across various states, including , Maine, , New Mexico, Oklahoma, and Texas.

The Aroostook Renewable Project is among the first initiatives, featuring the construction of a new substation in Haynesville, Maine, along with a 111-mile transmission line designed to connect the substation to the Independent System Operator-New England (ISO-NE) system in Pittsfield, Maine. The DoE has awarded Avangrid a $425 million contract for this project.

“Transmission line development, and the ability to connect clean, affordable energy to the New England power grid is one of the most effective tools available to combat climate change while also enabling a stronger, 21st century economy,” said Avangrid Chief Executive Pedro Azagra.

Another key project, the Cimarron Link, involves a 400-mile high-voltage direct-current (HVDC) transmission line running from Texas County to Tulsa, Oklahoma. This project will facilitate the transmission of 1.9 GW of capacity, providing low-cost wind and solar energy to demand centers in eastern Oklahoma and beyond. It is expected to create over 3,600 construction jobs and 20 permanent operations positions, with a potential contract value of up to $306 million.

Southern Spirit plans to construct a new 320-mile HVDC line that will interconnect the (ERCOT) grid with electric grids in southeastern U.S. power markets, such as the Midcontinent Independent System Operator South (MISO-S) and (SOCO). This initiative is aimed at improving grid reliability and preventing outages during severe weather events, providing 3 GW of bidirectional capacity, and generating 850 construction jobs and 305 permanent positions, with a potential contract value of up to $360 million.

The Southline Project will add a 108-mile transmission line delivering 1 GW of new, bidirectional capacity between Hidalgo County and Las Cruces, New Mexico. This project will create at least 150 construction jobs and support the energy requirements of industries in the region, including semiconductor, battery manufacturing, and data centers, with a potential contract value of up to $352 million.

In conjunction with these project announcements, the DoE released the final National Transmission Planning Study, highlighting the need for a substantial expansion of the U.S. transmission system to meet growing demand and reliability needs.

Ray Long, president and CEO of ACORE, remarked, “The research is clear – strengthening our nation's transmission system is vital to accelerating America's clean energy transition and cost-effectively ensuring a reliable electric grid.” Long emphasized the potential savings of $270 billion to $490 billion by mid-century, stating that investing in transmission could save $1.60 to $1.80 for every dollar spent.

He concluded, “We commend the Department of Energy for today's investment in four transmission projects that will create thousands of good-paying jobs and enable more affordable clean energy to power America's homes and businesses.”

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