US Rural Areas To Receive $300mln For Affordable Energy Sources

Funding aims to provide these communities with eligible projects to modernize existing electric generation facilities, upgrade electric grid transmission and distribution.

US Rural Areas To Receive $300mln For Affordable Energy Sources

The U.S. Energy Department announced on Wednesday that rural areas and tribal nations without access to reliable energy will start receiving more than $300 million to develop clean and affordable energy sources.

For remote communities with fewer than 10,000 residents, a bipartisan infrastructure law signed by President Joe Biden in 2021 included $300 million as well as $15 million for a prize competition to help them develop the capacity for new energy systems.

The announcement means that communities can now submit applications for federal cost-share funding of up to $100 million for multi-community projects and up to $5 million to $10 million for single-site demonstration projects.

Energy Secretary Jennifer Granholm said in a statement, “The DOE is stepping up its efforts to ensure that every American — especially those in rural and remote areas — can unlock the public health and cost-saving benefits that come with the transition to a clean energy future.

About one in six Americans resides in rural or remote areas, which are more likely to have low population densities, a distance from larger transmission systems, and disproportionately high energy costs. Economic development is frequently hampered by tribes’ and rural communities’ lack of reliable energy.

When it comes to the most affordable renewable energy sources, solar and wind power have maintained their top positions. Both energy sources are significantly less expensive than alternatives that use fossil fuels, and they get cheaper every year.

The funding aims to provide these communities with eligible projects to modernize existing electric generation facilities, upgrade electric grid transmission and distribution, and improve energy efficiency.

Deputy Energy Secretary of the United States David Turk made the funding announcement at the Alaska Federation of Natives’ Alaska Day Convention. Nine geographical regions representing various issues with energy access, weather patterns, and climate impacts will receive funding distributions. Plans ensuring benefits will be distributed fairly among impacted communities must be included in projects.