Biden administration has announced a substantial $3.5 billion in grants. These funds will support 58 critical projects spanning 44 states, representing the most substantial direct investment ever made into the nation's power grid. This initiative is made possible by the bipartisan infrastructure law signed by President Biden in 2021, with Energy Secretary Jennifer Granholm highlighting its pivotal role.
The United States power grid, much of which was constructed nearly a century ago, is grappling with the strains of intensifying climate change-driven storms, floods, and heatwaves. Simultaneously, increased power demand driven by electric vehicles and artificial intelligence is adding to the pressure on the system. Secretary Granholm emphasized the urgency of addressing these challenges, citing the catastrophic failure of the Texas grid during a severe cold spell in 2021, resulting in over 200 fatalities and widespread power outages. Wildfires in various states have further underscored the grid's vulnerability.
Granholm remarked, “The grid, as it currently sits, is not equipped to handle all the new demand … we need it to be bigger, we need it to be stronger, we need it to be smarter, to bring all of these new projects online.”
The approved projects will contribute over 35 gigawatts of new electricity to the grid from renewable sources such as wind and solar. Additionally, these initiatives will invest in 400 microgrids, which are self-sustaining energy systems. Notably, more than 75% of these projects involve partnerships with the International Brotherhood of Electrical Workers union, aiming to create and maintain union jobs within the sector.
This announcement represents the initial phase of selections under the broader $10.5 billion grid resilience and innovation partnerships program overseen by the Department of Energy (DOE). Among the significant allocations, over $507 million will support a project led by the Georgia Environmental Finance Authority and other organizations, focused on enhancing smart grid capabilities, battery storage, microgrids, and new transmission lines to benefit remote and under-invested communities.
In southeastern Pennsylvania, PECO Energy will work to enhance grid reliability and resilience through flood mitigation at substations, the replacement of aging infrastructure, and the deployment of battery systems for backup power.
Furthermore, certain projects will expand transmission capabilities across multiple states. For example, in Western states such as California, Arizona, and Washington, Holy Cross Energy will launch a wildfire mitigation project in collaboration with 39 rural electric cooperatives operating in high-threat areas. This initiative aims to bolster network resilience through investments in fire-resistant infrastructure, underground line installations, and the upgrading of overhead lines.
