US Bipartisan Infra Law To Create $8.3bn In12 Years: DOE

US Announces $104 Million Investment Plan For New Net-Zero Facilities

The Department of Energy (DOE) in the United State recently announced Twin States Clean Energy Link, the National Grid’s proposed transmission project. This project will support New England’s climate, clean energy, and energy security goals. This was selected as one of three projects nationwide to receive investment through the US Bipartisan Infrastructure Law’s Transmission Facilitation Program.

“To realize the full benefit of the nation’s goal of 100% clean electricity by 2035, we need to more than double our grid capacity and President Biden’s Investing in America agenda puts us in position to do just that,” said US Secretary of Energy Jennifer M Granholm. “This historic effort to strengthen the nation’s transmission will drive down costs for American families and deliver thousands of good paying jobs for American workers—helping communities keep the lights on in the face of climate change-induced extreme weather events.”

Through DOE’s Transmission Facilitation Program, a $2.5 billion revolving fund is likely to help overcome the financial hurdles associated with upgrading and building new, large-scale transmission lines, states the report. The DOE is entering into capacity contract negotiations with three interregional transmission line projects. These projects will strengthen grid resilience and reliability and enable the addition of more clean energy resources to the grid.

By offering capacity contracts, DOE increases the confidence of additional investors, encourages additional customers to purchase transmission line capacity, and reduces the overall risk for project developers. Therefore, Twin States remains subject to finalizing contractual arrangements and investment plans. To fulfil this plan, the National Grid is working closely with communities and local economic development partners to understand how the project’s benefits program can best support local needs. National Grid will continue to engage with DOE in the coming months on various aspects of the project to identify the best path forward through the Transmission Facilitation Program and secure maximum benefits to our communities and the region.

Benefits

Twin States will deliver clean energy from Canada, including hydropower, to New England to support the region’s carbon reduction goals and increase the supply of affordable clean energy. As a bi-directional line, Twin States will enable clean energy producers in New England, such as offshore wind, to export excess capacity to Quebec during times of lower domestic demand, providing a critical boost to the region’s clean energy economy.

The report expects the project to lower costs for customers across New England, and creating more than $8.3 billion in wholesale energy market. Its also expected to have cost savings over the first twelve years in operation alone, according to an independent market assessment based on current project estimates. The proposal is unique in that it utilizes roadway burial and existing transmission corridors in Vermont and New Hampshire to deliver 1,200 MW of clean energy directly to where it’s needed most, while unlocking new renewable development potential in the region.

Twin States is projected to generate hundreds of millions of dollars in new property tax revenues to host state cities and towns through which the line passes. It is also projected to contribute millions more in lease payments to Vermont and New Hampshire for underground burial of the lines along state roadways.

In addition, as part of the project, National Grid and Citizens Energy Corporation are assembling an innovative $260 million community benefits program. In the project its estimated that, at least 40% will be dedicated to disadvantaged communities throughout New England. The project is expected to create 1,200 well-paying jobs during construction. The reduction of electricity bills for customers and businesses across New England is expected to create significant economic growth, generating an estimated average of 3,700 jobs per year across the region.