US federal gov requires $50bn for grid modernisation to meet climate goals and secure grid


Up to $50 billion in federal spending is required in grid modernisation for the US to meet climate goals and ensure the grid is resilient and secure from cyber attacks, according to a new report released by GridWise Alliance.

GridWise Alliance has called for the US federal government to double its investments in grid modernisation from initial calls made in September of $25 billion.

Doubling infrastructure and manufacturing investments will help the country meet ambitious climate goals, build resilience, secure the grid against malicious attacks, and replace aging infrastructure.

The “Policy Framework for Grid Investments in Economic Recovery” offers a list of guiding principles focused on how and where federal investments should flow, which stakeholders are most prepared to effectively distribute these funds, and how to protect consumers and narrow the digital divide. Seven segments of recommendations outline the most critical systems in need of immediate federal investment, including:

  • Deployment of technologies to enhance grid flexibility
  • Deployment of technologies to enhance grid integration of buildings and vehicles
  • Cybersecurity technology and workforce
  • Section 48c manufacturing tax credit
  • Utility communications
  • Grid resilience
  • Workforce development

Related articles:
Utilities continued investment in natural gas infrastructure sparks investor concern
California requires 55GW of long-duration energy storage by 2045 for grid reliability

Gil C. Quiniones, GridWise Alliance Board Chair, said: “The diverse GridWise membership-led our industry’s voice in 2009 to help quickly deliver investments from the American Recovery and Reinvestment Act (ARRA) into the economy.

“Together, as we did before, GridWise is shining the spotlight on the accelerated need to enhance grid flexibility, increase utility communication systems, and train our workforce for digital, high tech grid jobs.

GridWise Alliance CEO Steve Hauser, said: “I applaud the efforts of our Policy Council, a GridWise member-led committee, for finding consensus around these seven segments and affirming them through stakeholder outreach,

“We call on Congress to utilize these recommendations and include significant funding for grid modernization in any infrastructure package designed to stimulate the economy and create jobs.”