Last week, I published a deep dive post about reconductoring transmission lines
with advanced conductors. It is a technology that has some high upfront costs
but many benefits, including being the fastest and least expensive way to add
transmission capacity and upgrade power grid capabilities.
The DOE announced on November 13
that the administration approved its offer of a $1.6 billion loan guarantee to
American Electric Power (AEP) for reconductoring about 5,000 miles of
transmission lines in Michigan, Ohio, Indiana, Oklahoma, and West Virginia. The
loan guarantee enables AEP to get a lower interest rate on the project and save
at least $275 million, and benefit energy customers – I am likely one of them.
Energy Secretary Wright noted:
"This loan guarantee will not only help modernize
the grid and expand transmission capacity but will help position the United
States to win the AI [artificial intelligence] race and grow our manufacturing
base."
The Tech Buzz wrote:
"The AEP loan guarantee reveals Trump's energy
strategy isn't the blanket rollback critics expected, but rather a calculated
political play that favors traditional infrastructure over renewable projects."
I find that last quote a bit
baffling. Upgrading power lines is a basic requirement, essentially a
prerequisite, for enabling the integration of those renewable projects. It’s
like saying one is choosing a building over its foundation. The loan was
originated in the Biden administration. Thus, it is an example of Bipartisan
agreement about supporting a useful project. That is a rarity these days, and
should be celebrated.
References:
US
agency approves $1.6 billion project that could lower Americans' energy bills:
'Modernize the grid'. Alyssa Ochs. The Cool Down. November 13, 2025. US
agency approves $1.6 billion project that could lower Americans' energy bills:
'Modernize the grid'
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