An electric co-op in Nevada has been awarded a loan of US$80.3m (£61.3m) for two new clean energy projects.
With the loan, Valley Electric Association will build a 35-megawatt energy storage system, serving the town of Pahrump, as well as a 2-megawatt solar power and energy storage system serving the Fish Lake Valley region.
The funds have been made available through the US Department of Agriculture’s $1bn Powering Affordable Clean Energy (Pace) programme. Part of the Inflation Reduction Act, Pace offers partially forgivable, low-interest loans for new clean energy and storage projects in rural America.
The projects in Pahrump and Fish Lake Valley will produce enough electricity to serve around 3,500 homes, helping to protect against price volatility and local grid resilience risks. Fish Lake Valley is fed by a 55-kilovolt radial line that crosses an area of extreme wildfire risk, increasing the potential for public safety power shutoffs.
“These projects are projected to greatly benefit Valley’s members. Resiliency and reliability concerns will be addressed specifically at Fish Lake Valley,” said Valley Electric CEO Mark Stallons, in a joint statement with Gabe DeGuzman, the co-op’s director of transmission services and load management.
As part of the scheme, Valley Electric will receive 20% loan forgiveness and direct-pay tax credits, covering around $47.3m of the $80.3m loan. The National Rural Electric Cooperative Association (NRECA) campaigned for inclusion of direct-pay tax credits in the Inflation Reduction Act, to enable tax-exempt entities, such as electric co-ops, to directly access federal clean energy tax credits.
“With the passage of direct pay legislation and cooperative access to the PACE initiative, our path to owning power supply assets became obvious,” added Stallons and DeGuzman. “Advocacy and policy efforts from NRECA laid the foundation for Valley Electric to receive this award. It truly has been a team effort.”
The USDA deputy secretary Xochitl Torres Small announced the funding on 29 August, while visiting the site of a planned solar power facility in Pahrump.
“Rural people deserve continued energy opportunities as demand for clean energy increases,” she said, adding: “The Biden-Harris Administration is working to make sure efforts to tackle climate change also help grow the local economy. These USDA investments will lower costs for Americans and create good-paying jobs in rural communities for years to come.”
