The US Department of Energy (DoE) has announced an investment in four transmission projects being developed by American Council on Renewable Energy (ACORE) members.
The investment, which totals $1.5bn, will enable nearly 1000 miles of new transmission development and 7.1GW of new capacity throughout Louisiana, Maine, Mississippi, New Mexico, Oklahoma and Texas.
The first project is the Aroostook Renewable Project and involves construction of a new substation in Haynesville, Maine and a 111-mile transmission line with a capacity of 1.2GW to connect the new substation to the Independent System Operator-New England (ISO-NE) system at a substation in Pittsfield, Maine.
The DoE selected Avangrid for a $425m capacity contract for the project.
“Transmission line development, and the ability to connect clean, affordable energy to the New England power grid is one of the most effective tools available to combat climate change while also enabling a stronger, 21st century economy,” said Avangrid chief executive Pedro Azagra.
The Cimarron Link is a 400-mile high-voltage direct-current (HVDC) transmission line from Texas County, Oklahoma to Tulsa, Oklahoma.
It will transmit 1.9GW of firm, point-to-point capacity to deliver low-cost wind and solar energy to growing load centres in eastern Oklahoma and elsewhere in the Southwest Power Pool, while creating more than 3600 construction jobs and 20 permanent operations jobs (up to $306m potential contract value).
Southern Spirit will construct a new 320-mile HVDC line connecting the Electric Reliability Council of Texas (ERCOT) grid for the first time with electric grids in the southeastern US power markets, including Midcontinent Independent System Operator South (MISO-S) and Southern Company (SOCO), which will enhance reliability and prevent outages during extreme weather.
This line across Texas, Louisiana, and Mississippi will provide 3GW of bidirectional capacity and create 850 construction jobs and 305 permanent operations jobs (up to $360 million potential contract value).
Southline will construct a new 108-mile transmission line that will deliver 1GW of new, bidirectional capacity between Hidalgo County, New Mexico and Las Cruces, New Mexico, creating at least 150 new construction jobs and helping meet energy needs of industries investing in the region, including semiconductor, battery manufacturing, and data centres (up to $352m potential contract value).
Today’s new selection is for Phase 2 of the Southline Project, following the prior selection of Southline Phase 1, a 175-mile line from Hidalgo County, New Mexico to Pima County, Arizona in the first round of the Transmission Facilitation Program.
The DoE also released the final National Transmission Planning Study, which finds the US must “significantly expand” its transmission system to meet America’s demand growth and reliability needs.
ACORE president and chief executive Ray Long said: “The research is clear – strengthening our nation’s transmission system is vital to accelerating America’s clean energy transition and cost-effectively ensuring a reliable electric grid.
“The National Transmission Planning Study demonstrates how a substantial expansion of America’s transmission system that aligns with the vision of ACORE’s Macro Grid Initiative would save taxpayers $270-$490bn by mid-century.
“This means that for every dollar spent on transmission, we could save $1.60-$1.80 in system costs.
“Upgrading the grid is a no-brainer, but to realise these sizeable benefits, America must reform its burdensome permitting process to ensure these critical transmission lines can be built in a timely manner.
“We commend the Department of Energy for today’s investment in four transmission projects that will create thousands of good-paying jobs and enable more affordable clean energy to power America’s homes and businesses.
“These investments will more than pay for themselves in benefits, and we congratulate the ACORE members behind each of these impressive projects.”