U.S. Energy Department Announces $366 Million to Support Clean Energy in Rural and Remote Areas

The U.S. Energy Department on Feb. 27 announced over $366 million for 17 projects in rural and remote areas across 20 states, benefiting 30 Tribal Nations and communities. The projects are a part of  the Energy Improvements in Rural or Remote Areas, or ERA, program. This funding, supported by the 2021 Infrastructure Investment and Jobs Act aims to accelerate clean energy deployment and support community-driven initiatives like building microgrids for health centers and constructing hydroelectric facilities on Tribal lands while addressing the climate crisis. Aligned with President Biden’s Justice40 Initiative, the selected projects prioritize disadvantaged communities disproportionately burdened by pollution, addressing unique energy challenges faced by rural areas. Each project is expected to develop a comprehensive Community Benefits Plan to ensure meaningful community engagement and maximize benefits.

The selected projects incorporate a range of clean energy technologies including solar, battery storage systems, and microgrids. Listed below are five major projects in renewable energy and sustainability, based on federal funding, representing approximately 60 percent of the total project cost of $ 366 million.

1. Solar + Storage Microgrids for Rural Community Health Centers: Implementing solar PV and battery storage systems to enhance energy resilience in rural community health centers across the Southeastern U.S. with a Federal Cost share of $57.01 million
2. Clean Energy in the Northwest Arctic: Installing solar, battery systems, and heat pumps to promote clean energy adoption in the Northwest Arctic Borough, AK. with a Federal Cost share of $54.81 million
3. Microgrids for Community Affordability, Resilience, and Energy Decarbonization (CARED): Establishing microgrids with solar PV and battery storage systems to improve affordability and resilience in seven communities across the U.S. with a Federal Cost share of $45.28 million
4. Community Scale Rural Bioenergy Facilities: Developing bioenergy facilities for forest biomass conversion to support rural communities in California. with a Federal Cost share of $30 million
5. Yakama Tribal Solar Canal & Hydro Project: Implementing solar and hydropower irrigation systems to enhance sustainability on the Yakama Indian Reservation, WA. with a Federal Cost share of $32 million

Selection for award negotiations by the department does not guarantee funding; negotiations may be canceled. The Office of Clean Energy Deployment manages the ERA program, evaluating projects with “go/no-go” decision points. The program includes rural opportunities like the Energizing Rural Communities Prize. The office is gathering feedback for future funding opportunities under the ERA initiative.