Biden Administration Invests $7.3 Billion in Rural Clean Energy
“The Inflation Reduction Act makes the largest investment in rural electrification since FDR and the New Deal in the 1930s.” -John Podesta
Image for illustration purposes.
The Biden-Harris Administration has unveiled a landmark $7.3 billion investment in clean energy for rural America through the Empowering Rural America (New ERA) programme. This initiative, funded by the Inflation Reduction Act, marks the largest investment in rural electrification since the 1930s New Deal.
The funding will be distributed to 16 rural electric cooperatives across 23 states, aiming to build over 10 gigawatts of clean energy capacity. This includes wind, solar, nuclear, and hydropower projects. The investment is expected to benefit approximately 5 million rural households, representing 20% of the nation’s rural population.
Key aspects of the programme include:
1. Creation of 4,500 permanent jobs and 16,000 construction jobs
2. Annual reduction of 43.7 million tonnes of greenhouse gas emissions
3. Installation of 1,892 megawatt-hours of battery storage to enhance grid reliability
The first finalised award goes to Dairyland Power Cooperative, receiving nearly $573 million in grant and loan funding. This cooperative plans to leverage the funding for a total investment of $2.1 billion, developing projects totalling 1,080 megawatts across its service territory.
Environmental impact is a significant focus, with the initiative aiming to reduce pollution by 2.9 billion tonnes over the projects’ lifetimes. This is equivalent to removing more than 10 million petrol-powered cars from the road annually.
The programme also aligns with the administration’s Justice40 Initiative, ensuring that 40% of certain federal investments benefit disadvantaged communities. It aims to lower energy costs for rural Americans while enhancing grid resiliency and supporting the growing electricity demand.
This investment demonstrates the administration’s commitment to rural development, clean energy transition, and addressing climate change. By combining job creation, environmental protection, and energy cost reduction, the New ERA programme seeks to transform the rural energy landscape and contribute significantly to the nation’s clean energy goals.
Source: U.S. Department of Agriculture
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