The U.S. Department of Energy (DOE) has taken a significant step towards improving the grid resilience and reliability of the United States. In its latest commitment, the DOE has allocated up to $1.3 billion to fund the development of three interregional transmission projects, paving the way for an additional 3.5 GW of capacity to come online across six states.

These selected projects demonstrate the DOE’s dedication to strengthening the grid infrastructure while addressing the growing demand for clean energy resources. By extending transmission capabilities and bringing diverse, clean energy to more customers, these projects aim to create a sustainable and efficient energy landscape.

One of these initiatives, Cross-Tie 500kV Transmission Line, proposes a 214-mile route connecting existing transmission systems in Nevada and Utah. With a capacity of 1,500 MW, this transmission line aims to enhance transmission capacity, boost grid reliability and resilience, alleviate congestion on critical transmission lines, and expand accessibility to low-cost renewable energy throughout the region. Construction for Cross-Tie is expected to commence in Q1 of 2025.

Another promising project is the Southline Transmission Project, which plans to construct a 175-mile, 748 MW transmission line from Hidalgo County, New Mexico, to Pima County, Arizona. This initiative will not only unlock renewable energy development in southern New Mexico but also deliver clean energy to growing markets in Arizona that currently rely on fossil fuel generation. By utilizing existing transmission rights of way and upgrading aging infrastructure, Southline aims to alleviate congestion and constraints in the region. Construction for this project is targeted to begin in Q1 of 2025.

Furthermore, the Twin States Clean Energy Link proposes a 1,200 MW high-voltage direct current (HVDC) bidirectional line connecting New Hampshire and Vermont. Designed to expand the capacity of the New England electric grid, this transmission line will improve resiliency, reliability, and efficiency while granting access to clean firm energy supplies from Quebec, Canada. The bidirectional design of Twin States will also facilitate power export to Canada when New England produces an energy surplus due to the anticipated growth of the offshore wind industry. Construction is expected to commence in either Q3 or Q4 of 2026.

The DOE is not stopping with these three projects. It anticipates releasing a second round of funding through a request for proposals in the first half of 2024. This upcoming funding may consist of a combination of public-private partnerships, loans, and capacity contracts totaling up to $1 billion. The DOE’s continuous commitment to improving the nation’s transmission infrastructure underscores its dedication to a clean energy future.

The DOE’s funding of these major transmission projects represents a significant step towards grid resilience, reliability, and cleaner energy solutions. By fostering the development of these initiatives, the United States is poised to expand its clean energy capacity, support the growth of renewable resources, and reduce its reliance on fossil fuels. The substantial investment in transmission infrastructure sets the stage for a more sustainable and efficient energy landscape in the years to come.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.