U.S. DOE Announces $15 Billion Loan to PG&E for Clean Energy Upgrades in California

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  • $15B loan guarantee to PG&E for hydropower expansion, battery storage, and grid upgrades.
  • Job creation: Thousands of construction and operations roles to be supported through PG&E’s PowerPathway program.
  • Focus on disadvantaged communities: PG&E commits to locating projects in areas affected by pollution and underinvestment.

The U.S. Department of Energy (DOE) announced a $15 billion loan guarantee to Pacific Gas & Electric (PG&E) for its Project Polaris, focusing on hydropower generation, battery storage, and grid enhancements. This loan aims to meet forecasted load growth, improve electric reliability, and reduce costs for California consumers.

PG&E, a major utility serving Northern and Central California, will upgrade its transmission systems, implement grid-enhancing technologies, and enable virtual power plants to better serve 16 million customers. The loan will help PG&E avoid raising electricity prices by providing a lower interest rate than traditional market financing.

This project supports PG&E’s effort to provide more reliable, sustainable power while reducing costs for customers,” said Energy Secretary Jennifer Granholm.

Energy Secretary Jennifer Granholm

The loan is the first Energy Infrastructure Reinvestment (EIR) project under DOE’s new program, aimed at supporting infrastructure that will help utilities reduce emissions and improve energy efficiency. PG&E’s commitment to community benefits aligns with the Biden-Harris Administration’s Justice40 Initiative, ensuring that 40% of benefits flow to disadvantaged communities.

Related Article: U.S. DOE Invests Over $23 Million to Reduce Carbon Emissions Across the United States

PG&E’s partnership with the International Brotherhood of Electrical Workers (IBEW) will also provide job training and employment for underserved groups through its PowerPathway program, which is expected to generate thousands of construction and operational jobs.

PG&E’s investments align with the Inflation Reduction Act and the Title 17 Clean Energy Financing Program, targeting infrastructure that can significantly cut greenhouse gas emissions.

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