The US Department of Energy has announced $22.4 billion in loans for eight utilities across 12 states, aimed at reducing carbon emissions and energy costs by supporting the development and retrofitting of power plants and grid infrastructure.
These conditional loans, issued through the Energy Infrastructure Reinvestment (EIR) program, will help utilities reduce financing costs and expand access to clean energy services for nearly 15 million customers nationwide. The loans offer lower interest rates than commercial markets, allowing utilities to stabilize energy costs and increase the adoption of renewable energy sources.
The funding is part of a larger effort by the Biden administration to support the Inflation Reduction Act’s clean energy incentives. However, it remains unclear how the Trump administration will handle these loans, which must meet certain terms and milestones before they can be finalized.
Under the Biden administration, the Loan Programs Office (LPO) has issued over $55 billion in loans and loan guarantees for clean technology projects across 32 deals. The office has made significant profits, with $15 billion in principal payments and $5.4 billion in interest collected to date.
The majority of these projects are located in Republican districts, which may lead some lawmakers to oppose efforts to restrict their access to the loans. Nevertheless, utilities that have received LPO funding are considered investment-grade and have been approved by state regulators as financially prudent.
This latest round of funding will support a range of projects, including high-voltage transmission lines, renewable energy deployments, and battery storage systems. The aim is to alleviate grid stress and reduce carbon emissions while increasing access to clean energy services for American consumers.
Source: https://www.canarymedia.com/articles/utilities/biden-admin-offers-utilities-22-4b-to-cut-energy-costs-and-emissions