Transmission is so back.
Eight long-range transmission projects have been selected to receive $2.2 billion as part of the second traunch of funds set aside by the bipartisan infrastructure law.
The projects announced by the Department of Energy on Tuesday are part of the $10.5 billion program designed to enhance grid flexibility and improve grid resiliency amid growing threats of extreme weather and climate change. The first round of funding from the Grid Resilience and Innovation Partnerships Program (GRIP), $3.46 billion for 58 projects, was announced last October.
The crown jewel of the second round of GRIP funds is the North Plains Connector, a 415-mile high-voltage direct-current transmission line that would stretch from North Dakota to Montana.
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The project, a joint venture between utility holding company Allete and independent transmission developer Grid United, will be supported by a $700 million GRIP grant. Allete expects to own 35% of the project, which is expected to come online in 2023.
The $3.2 billion North Plains Connector would create 3,000 MW of transfer capacity between the Midcontinent Independent System Operator, Western Electricity Coordinating Council, and Southwest Power Pool.
The North Plains Connector is unique in that it addresses the U.S. transmission grid’s critical need for interregional capacity, practically none of which has been developed in recent years.
According to the consultancy Grid Strategies, the U.S. installed 1,700 miles of new high-voltage transmission miles per year on average in the first half of the 2010s but that dropped to only 645 miles per year, on average, in the decade’s second half. Low transfer capability between regions is a key risk for reliability if load growth outpaces the deployment of new generation in some regions, the report added.
There’s an argument to be made that the tide is turning for transmission. In May, the Federal Energy Regulatory Commission issued a landmark rule for long-term regional transmission planning and signaled that further action on interregional transmission development could be coming soon. Meanwhile, a long-awaited energy permitting bill is working its way through Congress.
For utilities grappling with the demands of the energy transition, which could require a doubling or tripling of existing grid capacity, it’s welcomed news.
“This grant certainly reinforces the importance of expanding and strengthening our nation’s grid—this innovative project will enhance energy reliability and resilience across a large part of the nation,” Allete CEO Bethany Owen said. “We are excited to be part of this historic investment in critical infrastructure as we continue to advance our sustainability in action strategy. We are always stronger when we work together, as shown by this program that unites government, utilities, and private industry to benefit the broader region.”
