The Energy Department on Thursday announced an investment of $1.5 billion in electricity grid expansion projects it said will improve reliability and relieve transmission congestion.
The money, supplied through the Transmission Facilitation Program, will go toward the construction of an estimated 1,000 miles of new transmission lines with 7,100 megawatts of added capacity across six states. This will result in 9,000 construction jobs and 350 permanent jobs, the Biden administration said.
Deputy Energy Secretary David Turk said on a call with reporters that through the TFP, which is funded through the 2021 bipartisan infrastructure law, the department “buys capacity on the line and then sells it when new customers show up.” The program is authorized to use capacity contracts, loans or public-private partnerships to provide federal support for large-scale transmission lines, but the Biden administration has only opted for capacity contracts to date.
