US President Biden has tabled a plan, calling on Congress to invest $100 billion to reenergise America’s power infrastructure. According to the Plan, the goal is to “create a more resilient grid, lower energy bills for middle class Americans, improve air quality and public health outcomes, and create good jobs, with a choice to join a union, on the path to achieving 100 percent carbon-free electricity by 2035”.
The Department of Energy (DOE), the Department of Transportation (DOT) and an independent analysis from Americans for a Clean Energy Grid have developed new measures to accelerate “…the needed expansion and modernization of America’s power infrastructure to build a more reliable grid”.
According to the ‘Ready to Go’ report from Americans for a Clean Energy Grid, the new measures would trigger $33 billion in investment and create up to 1,240,000 jobs, both directly and indirectly.
The US has recognised the significance of the power grid and the investment that is needed as well as providing an example of the economic benefits and job creation that can accompany new climate investing.
CEO John Fitzgerald responded positively to the step-up in attention to US grid investment:
“The level of renewables needed to decarbonise can not be sustained by current and planned grid infrastructure. Significant investment in continental scale grid infrastructure is critical to unlock a renewables powered future. Hopefully, these new measures will encourage similar commitments from Europe and the rest of the World.”
The DOE will introduce two new financial facilities to advance the construction of high-voltage transmission lines. These facilities will collectively make available $8.35 billion for the development of new projects.
This effort will be aided by the DOT which will expedite siting and permitting sites for transmission lines through public highways and rights-of-way as well as supporting renewable energy projects and electric vehicle charging infrastructure.
Furthermore, a group of states, companies and advocates from a wide range of public and private sectors have formed a Grid Investments Advisory Council which will also contribute to the overall goal of modernizing the grid.
The Infrastructure Plan is part of President Biden’s $2 trillion American Jobs Plan which can be found here.