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U.S. govt allocates $315 mln to boost clean energy access in rural, tribal communities

by Segun Ogunlade March 1, 2023
written by Segun Ogunlade March 1, 2023
517

The U.S. government through the Energy Department headed on Wednesday said that rural communities and tribal nations lacking access to reliable energy will now have access to more than $300 million to develop clean and affordable energy sources.

The announcement was made by U.S. Deputy Energy Secretary David Turk at the Alaska Federation of Natives’ Alaska Day Convention and it came over a year after a bipartisan infrastructure law signed by President Joe Biden in 2021 earmarked $300 million for remote communities of fewer than 10,000 residents plus $15 million for a prize competition to help them build capacity for new energy systems.

With this, it means communities can now apply for federal cost-share funding from $5 million to $10 million for single-site demonstration projects and for up to $100 million for multi-community projects to increase energy affordability and build climate resilience.

Read also: UK efforts to deal with energy crisis at risk of missing net zero target

“The DOE is doubling down on its efforts to ensure every American — especially those in rural and remote areas — can unlock the public health and cost-saving benefits that come with the transition to a clean energy future,” Energy Secretary Jennifer Granholm was quoted as saying in a statement.

Government data shows about one of every six Americans lives in rural or remote communities, and as such had to grapple with disproportionately high energy bills and unreliable energy service due to their distance from larger transmission systems and low population density, a situation that is often a barrier to economic development in such areas.

Thus, this new funding aims to provide these communities with eligible projects to upgrade electric grid transmission and distribution, modernize existing electric generation facilities and increase energy efficiency.

The funding will be distributed through nine geographical regions representing different energy access issues, weather patterns and climate impacts. Projects must include plans ensuring that benefits will be spread equitably across affected communities.

Story was adapted from Reuters.

 

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