The DOE’s $8 Billion “kill list” threatens to curb attempts to modernize the electrical grid in the United States.
“Energy dominance” marks a primary goal for the Trump administration; however, the exact interpretation of domination appears to not be entirely clear.
Modernizing the electric grid promises a revitalization that would greatly benefit many Midwestern states and will facilitate community growth with control of this essential portion of modern life. But in the most recent series of cuts are five electricity transmission projects that would open new channels for Great Plains energy to flow into the central United States. Consumer prices are certain to be affected adversely.
In the last few years, planners and representatives of the energy industry have embarked on the complicated, behind-the-scenes work of an energy transition. With an outdated grid, American utilities have noted that electrical grids cast severe limitations regarding what domestic future power options could feasibly be entertained. In many regions, grid modifications and enhancements were identified as an important first step. Now, Trump’s ideas of dominating this sector appear to focus only on increasing production and not on modernizing the way that any power is moved.
Energy Infrastructure for All
Regardless of how it is produced, electricity travels through an energy infrastructure that proceeds out of sight to most consumers. Maintaining the grid marks an essential form of maintenance, and government assistance and federal and state grants are essential to any development in this sector. Over previous decades, this funding has benefitted all types of energy utilities.
Although not stated outright, it appears that these projects were identified for funding cuts by the DOE because they will facilitate the transmission of power from an array of new power projects, including some using renewable sources.
For instance, a unique partnership between two big regional grid operators — Midcontinent Independent System Operator and Southwest Power Pool — was derived starting in 2020 as the Joint Targeted Interconnection Queue. The plan targeted all or portions of 15 states, reaching from Minnesota to Louisiana and from the Dakotas to Texas. Rather than investing in one or two supersized transmission projects, planners have pinpointed choke points that restrict power flows along the two systems’ common boundary and leave both grids less secure. The DOE grant would have shifted some of the upfront investments in new transmission to federal taxpayers and helped the project to be completed more quickly.
“Without these investments, Minnesota could face higher energy prices, slower infrastructure development, and increased burdens on low- and middle-income households — all while demand for clean, affordable energy continues to grow,” the Minnesota Department of Commerce protested after the White House lumped the grant cancellation in with the $8 billion in cuts that were announced on Oct. 1.
Targeting Green Energy?
It appears that this upgrade for all consumers fell prey to the fact that some of the power would be generated sustainably. In particular, the canceled $464 million federal award would have helped pay part of the $1.8 billion cost of building power lines to connect two regional grids spanning much of Middle America — a project meant to move wind power across state lines and to eliminate bottlenecks that are contributing to rising electricity prices.
These cuts appear to be part of a pattern to stall the growth of green power. The decision to kill funding for the Minnesota-based effort to build the power lines comes after the DOE, in July, stripped another giant electricity project of federal financial support. Known as the Grain Belt Express, this was a 780-mile, extra-high-voltage line that was planned to bring massive amounts of wind power from Kansas to the eastern grid. This project’s $4.9 billion guaranteed loan was cancelled, putting the massive project in jeopardy.
DOE Secretary Chris Wright said in a statement that the canceled projects “were not economically viable and would not provide a positive return on investment.” The canceled DOE projects and those on a longer DOE target confirmed by the department that contain $23 billion in awards tentatively listed as “terminated” stand as a test of how the Trump administration will address the unprecedented pressures that are mounting on the nation’s aging, stressed power systems. And it stands to hurt consumers in the long run.
Stalling Energy Innovation
Clearly, strengthening transmission capacity along these corridors and others supports the connection of all types of new generators. For instance, as companies select locations for new data centers, factories, or shale oil production, “energy supplies will remain the foundational priority of choosing a location,” said Michael Goggin, executive vice president of Grid Strategies. Federal funding is an essential first step in providing the access that will be needed by such facilities.
These seed opportunities are most needed in many of the regions affected by DOE cuts. Regardless of the methods that the industry finds to be the most cost-effective, grid improvements will benefit consumers in these regions while also stimulating new initiatives in these locations, bringing new jobs and opportunities.
A dominant energy strategy rises from the presence of strong infrastructure that can move the power easily and cheaply. These cuts leave the American grid in a much less dominating position for future development.
About the Author: Brian C. Black
Brian C. Black is Distinguished Professor of History and Environmental Studies at Penn State Altoona and author, most recently, of Ike’s Road Trip: How Eisenhower’s 1919 Convoy Paved the Way for the Roads We Travel. (Godine, 2024). ENERGY TRANSITION 2025 is an ongoing series to place details of our current energy shift into historical context.
Image: Shutterstock/Pla2na
