In a significant move towards promoting clean energy and improving rural electrification, the US government unveiled two new grant and loan programs, with a combined availability of approximately $11 billion (EUR 10.1 billion).
Under the leadership of President Biden and Vice President Harris, the US Department of Agriculture (USDA) is preparing to launch the Empowering Rural America (New ERA) program. This initiative has allocated $9.7 billion to assist eligible rural electric cooperatives in implementing renewable energy facilities, as well as adopting zero-emission and carbon capture systems.
Simultaneously, the USDA will assess interest for the Powering Affordable Clean Energy (PACE) program, which has a budget of $1 billion. The PACE program aims to support the development of large-scale solar, wind, geothermal, biomass, hydro, and energy storage projects. Project developers and electric service providers, including municipals, cooperatives, investor-owned utilities, and Tribal utilities, may qualify for “partially forgivable loans” under this initiative.
The recent announcement marks the most substantial investment in rural electrification since 1936 when President Franklin Roosevelt enacted the Rural Electrification Act into law.
Both programs align with President Biden's Investing in America agenda, reflecting the administration's commitment to sustainable energy development and the advancement of rural communities.
