The new energy economy is booming in the Southeast, and we’re on the cusp of getting some of the infrastructure we need to keep it growing without increasing reliance on fossil fuels.
Last month, the Department of Energy recently issued a series of grants designed to help improve our national power grid. Two major grants impact our region:
TVA will improve reliability
$250 million went to the Tennessee Valley Authority (TVA) and some of TVA’s local utility customers, with the funding directed toward 84 projects that will strengthen the power grid and help foster the growth of renewable energy. The grant is part of the Bipartisan Infrastructure Law, passed in 2021 and signed into law by the Biden administration.
According to the Knoxville News Sentinel, which reported on the grant when it was announced, the benefits of the projects will include:
*more than 2,400 MW of new electrical capacity—enough to power more than 1.4 million homes and put new renewable energy projects online;
*a faster and more efficient interconnection queue, meaning new power sources can be plugged into the grid and start providing energy to ratepayers more quickly; and
*the first-ever connection between TVA’s power grid and that of the Southwest Power Pool (SPP), which operates in the Midwest.
Once operational, these projects will significantly improve the reliability of electricity for customers within the TVA’s footprint, meaning they will face fewer power outages and likely lower prices. This has been too long in coming, but it is a win for families and businesses in the Tennessee Valley.
During Winter Storm Elliot in 2022, the TVA implemented rolling blackouts while SPP was forced to curtail the ample wind energy they were generating because it lacked the grid capacity. If TVA and SPP had been linked at the time, customers in both regions would have benefited.
The Department of Energy estimates that the TVA project will reduce local power outages by 94% and generate $250 million in economic benefits—in effect offsetting the entire cost of the grant.
Georgia Power’s grid gets enhanced
Another major grant was awarded to Georgia Power, the state’s largest utility, in the amount of $160 million to be spent on Grid Enhancing Technologies (GETs), including dynamic line rating technology and reconductoring. Both are technological enhancements that will improve power flow through the wires without requiring major new construction.
This grid update is a welcome improvement, though again it’s coming later than it should have. SACE witnesses appeared before the Georgia Public Service Commission in late 2023, arguing that these exact improvements – dynamic line ratings and reconductoring, along with other GETs – should be part of Georgia Power’s Integrated Resource Plan (IRP)—a periodically updated road map to the utility’s future activities. The Commission declined to enforce these suggestions, and Georgia Power did not take them on voluntarily. Now the federal government has stepped in to sponsor them.
What comes next
To dramatically understate matters, there is more work to do in Georgia, Tennessee, and across the region. The National Transmission Needs Study estimated in 2023 that the Southeast will need about 6.8 Terawatt-miles of new power lines to keep up with the growing electricity demand in the region within the next ten years (by 2035). The federal dollars are a decent start at offsetting these needs, but it’s unlikely a similar bill will pass under the next administration. Most or all of the remaining effort will need to be local.
Transmission is often seen as technical but its benefits are not abstract. The lights stay on during a brutal winter storm; the bill arrives and you don’t have to struggle to pay it; a new, power-needy manufacturing plant opens and you get a job.
In press releases touting the grant awards, both TVA and Georgia Power cheer the economic and social benefits that will come from the new transmission lines, including new jobs and less pollution. In short, these investments pay for themselves. We can’t afford to stop investing in our community even when the federal dollars dry up.
The post New federal grants will improve the Southeastern power grid. But the need for more will only grow from here. appeared first on SACE | Southern Alliance for Clean Energy.
Renewable Energy
ACORE Statement on Treasury’s Safe Harbor Guidance
ACORE Statement on Treasury’s Safe Harbor Guidance
Statement from American Council on Renewable Energy (ACORE) President and CEO Ray Long on Treasury’s Safe Harbor Guidance:
“The American Council on Renewable Energy (ACORE) is deeply concerned that today’s Treasury guidance on the long-standing ‘beginning of construction’ safe harbor significantly undermines its proven effectiveness, is inconsistent with the law, and creates unnecessary uncertainty for renewable energy development in the United States.
“For over a decade, the safe harbor provisions have served as clear, accountable rules of the road – helping to reduce compliance burdens, foster private investment, and ensure taxpayer protections. These guardrails have been integral to delivering affordable, reliable American clean energy while maintaining transparency and adherence to the rule of law. This was recognized in the One Big Beautiful Act, which codified the safe harbor rules, now changed by this action.
“We need to build more power generation now, and that includes renewable energy. The U.S. will need roughly 118 gigawatts (the equivalent of 12 New York Cities) of new power generation in the next four years to prevent price spikes and potential shortages. Only a limited set of technologies – solar, wind, batteries, and some natural gas – can be built at that scale in that timeframe.”
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ABOUT ACORE
For over 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s leading voice on the issues most essential to clean energy expansion. ACORE unites finance, policy, and technology to accelerate the transition to a clean energy economy. For more information, please visit http://www.acore.org.
Media Contacts:
Stephanie Genco
Senior Vice President, Communications
American Council on Renewable Energy
genco@acore.org
The post ACORE Statement on Treasury’s Safe Harbor Guidance appeared first on ACORE.
https://acore.org/news/acore-statement-on-treasurys-safe-harbor-guidance/
Renewable Energy
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Renewable Energy
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