DOE Allocates $15B to PG&E for Hydropower, Battery Expansion
- Most of these new projects are located in places classified as disadvantaged by the White House Council on Environmental Quality.
- Benefit underserved communities in California by providing them with employment and training opportunities.
The United States Department of Energy (DOE), an executive department of the U.S. federal government overseeing its national energy policy, has conditionally approved a $15 billion loan guarantee for Pacific Gas & Electric (PG&E), a California-based utility company.
PG&E will use the proceeds to invest in green energy projects such as hydropower and battery storage systems. These projects will fortify the electricity grid, expand the company's capacity, and develop advanced technologies like virtual power plants, which combine smaller energy sources to create a more resilient energy system.
The utility company submitted its loan application in June 2023 and has been working with the DOE on the deal for quite some time now. Unlike traditional financing, this loan has lower interest rates, helping PG&E’s customers save more.
The company also aims to create social and community benefits by working with unions, like the International Brotherhood of Electrical Workers, to provide employment and training to people from underserved communities. This will benefit Native American tribes, community organisations, and low- to middle-income groups.
PG&E CEO Patti Poppe said: "This enables us to save money for customers; this is a straight pass through to all of our customers in PG&E service areas. Over the life of the loans, we would save over $1 billion for customers. When electricity is essential to powering the growth of California, we need to make sure that it's affordable."
The DOE's Energy Infrastructure Reinvestment programme backs projects that upgrade or repurpose outdated energy infrastructure, reducing pollution.
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