U.S. Energy Department Announces $1.5 Billion for Transmission Projects, Enabling 7.1 Gigawatts of Capacity

The U.S. Energy Department, on Oct. 3, announced $1.5 billion for four transmission projects that will improve grid reliability and resilience and support the development of 7.1 gigawatts (GW) of new capacity across six states. The department also released its final National Transmission Planning Study, which finds that expansion of the transmission system throughout the entire contiguous U.S. could lead to electric system cost savings of $270 billion to $490 billion through 2050.

The transmission study reveals that interregional transmission planning and development could significantly improve grid reliability throughout the U.S. and produce substantial cost savings. According to the report, the U.S. will need to double to triple the 2020 transmission capacity by 2050 to meet an increase in demand. With the coordination of transmission regions to achieve resource adequacy, system costs through 2050 could be reduced by $170 billion to $380 billion.

The $1.5 billion investment is a part of the Transmission Facilitation Program, or TFP, established by the 2021 Infrastructure Investment and Jobs Act. In total, the program allocates $2.5 billion to the development of interregional transmission infrastructure across the U.S.Overseen by the department’s Grid Deployment Office, the four selected projects will develop approximately 1,000 miles of new transmission lines and support 7.1 GW of capacity in the states of Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas.

The projects are described below:

• Aroostook Renewable Project, with up to $425 million contract value, involves a 111-mile, 1,200 megawatt (MW) transmission line from Haynesville to Pittsfield, Maine, providing low-cost clean energy to New England;
• Cimarron Link, with up to $306 million contract value, involves a 400-mile HVDC line from Texas County to Tulsa, Oklahoma, transmitting 1,900 MW of wind and solar energy;
• Southern Spirit, with up to $360 million contract value, involves a 320-mile HVDC line connecting ERCOT with southeastern U.S. grids, offering 3,000 MW bidirectional capacity; and
• Southline, with up to $352 million contract value, involves a 108-mile transmission line from Hidalgo County to Las Cruces, New Mexico, delivering 1,000 MW.

In the first round of TFP funding, announced in October 2023, the department committed $1.3 billion to three transmission projects across Arizona, New Hampshire, New Mexico, Nevada, Utah, and Vermont.