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Utilities await DOE action on loans to boost grid


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Utilities await DOE action on loans to boost grid

 

The $23 billion in loans rolled out in the waning days of the Biden administration — much of which would go to Midwest states that voted for Trump in November — could trigger big investments in new transmission lines, batteries, renewable energy and natural gas infrastructure.

But to move ahead, the loans need approval from the Trump team

 

If the DOE elects to close the loans, advocates argue the financing will help boost electric reliability and control the high costs of upgrading and expanding infrastructure. And all of that is needed as artificial intelligence projects and broad electrification of the economy drive a surge in U.S. electricity demand.

 

“These loans are critically important at a time of growing load, especially for affordability,” said Christian Fong, senior associate in RMI’s carbon-free electricity program.

 

A recent report from the consultancy ICF International says U.S. electricity demand is likely to grow a whopping 25 percent between 2023 and 2030, and an even more staggering 78 percent by 2050. Citing demand growth and risks of disruption, Energy Secretary Chris Wright issued directives in recent weeks to force utilities to keep fossil fuel plants running.

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