Rural electric co-ops in the USA have been awareded US$4.37bn for clean energy projects, as part of the US Department of Agriculture’s (USDA) Empowering Rural America (New Era) programme.
The $9.7bn New Era fund is part of Joe Biden’s Inflation Reduction Act, the United States’ largest investment in rural electricity since the Rural Electrification Act in 1936.
The fund aims to support work to reduce climate pollution, lower electricity costs for communities and create green jobs across rural areas of the US.
“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” said agriculture secretary Tom Vilsack. “The Inflation Reduction Act’s historic investments enable USDA to partner with rural electric co-operatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers and small business owners.”
Applications for the funding opened to member-owned rural electric co-ops in 2023, receiving 157 letters of interest from around the country.
15 co-ops have so far been awarded New Era funding, with the latest round of investment announcements including:
- More than $1.4bn to San Miguel Electric Cooperative, Inc. for solar and battery storage projects.
- More than $1.3bn to Seminole Electric Cooperative, Inc. for solar and battery energy storage projects across rural portions of Florida.
- $331.5m to Oglethorpe Power Corporation to refinance outstanding loans for the retired Hal B. Wansley coal plant.
- Up to $325m to Georgia Transmission Corporation for projects including new transmission lines in Georgia.
- Nearly $262m to United Power for its transition to a clean energy portfolio in rural Colorado.
- $225m to Core Electric Cooperative for wind, solar energy, and battery storage projects in Colorado.
- $200m to Nebraska Electric G&T for wind and solar energy in Butler, Burt and Custer counties.
- Nearly $170m to Connexus Energy for hydro, solar and wind energy, and battery energy storage projects in Minnesota.
- Nearly $50m to Yampa Valley Electric Association for solar energy and battery energy storage in northwestern Colorado and southwestern Wyoming.
- More than $43m to Trico Electric Cooperative Inc. for solar and battery energy storage projects in rural Arizona.
San Miguel general manager and CEO Craig Courter said the funding represents a “new era” for the co-op, allowing it to “virtually eliminate our greenhouse gas emissions, while continuing to provide affordable and reliable power to rural South Texans”.
Core CEO Pam Feuerstein described the funding as “an integral part of Core’s broader strategy to ensure reliable and safe power and maintain stable rates for our members, while in alignment with Colorado’s greenhouse gas reduction objectives.”
The USDA joined Connexus Energy at the co-op’s headquarters in Ramsey to mark the announcement in December.
At the event, Connexus CEO Brian Burandt said the funding will support Connexus’ journey toward decarbonising their resource portfolio, including 282 MW of wind, solar and hydro power, along with 20 MW of battery storage.
“We’re excited to see these projects take shape,” said Burandt. “Our power supply diversity will help us mitigate risk and strengthen our energy resilience.”
In addition to the ten announced last month, six more co-ops have been selected to move forward in the process to receive New ERA funding in Colorado, Louisiana, Oregon, Washington and Idaho.
Further announcements are expected in the coming weeks.
Main photo: USDA RUS administrator Andy Berke with Connexus Energy directors and CEO Brian Buradt
