SC power co-ops could get $500M in federal clean energy funds
TL/DR –
The Central Electric Power Cooperative, which supplies electricity to South Carolina’s 19 power cooperatives, could receive up to $500 million in federal grants and low-interest loans to support the costs of solar and nuclear energy for about 2 million customers over the next 20 years. The U.S. Department of Agriculture selected Central’s application for a portion of federal dollars from the landmark clean energy law signed by President Joe Biden in 2022, known as the Inflation Reduction Act. The funding, still under review, will be used to partially cover the costs of purchasing power from the Catawba Nuclear Station and three proposed solar farms in Georgetown County, along with the cost of batteries used to store solar-generated power.
Federal Funding for South Carolina’s Clean Energy Efforts
South Carolina’s Central Electric Power Cooperative, Inc., which supplies electricity to 19 power cooperatives in the state, is in line to receive up to $500 million in federal grants and loans. The funds will cover solar and nuclear energy costs for approximately 2 million power customers over the next 20 years under the landmark clean energy law, the Inflation Reduction Act, signed by President Biden in 2022.
The U.S. Department of Agriculture, which selected Central’s funding application, has yet to determine the exact grant and loan amount. Final figures will be revealed in the spring, according to Central’s spokesman Avery Wilks.
Responding to the Growing Power Demand
South Carolina is grappling with increasing power production to match its rapid growth. Central’s CEO, Rob Hochstetler, emphasized the importance of this federal funding in aiding production expansion while reducing carbon emissions and maintaining affordable energy costs.
Central is hopeful for $306.5 million in grants and $126.3 million in loans to partially cover the power purchasing cost from the Catawba Nuclear Station in York County. This follows Central’s agreement last year to acquire 150 megawatts from Catawba, which is licensed to produce power till 2043.
Benefits of the Funding
The federal funds could reduce the price cooperative members paid for the nuclear power agreement. Hochstetler highlighted the benefits of this funding to South Carolina’s attractiveness to new industries and power security during peak demand periods.
Additionally, Central hopes to secure $52.3 million in grants for power from three proposed solar farms in Georgetown County, $69 million for 200 megawatts of other solar power over the next 20 years, and $14.4 million to cover the cost of batteries used to store solar power.
—
Read More US Economic News