The U.S. Department of Energy (DOE) announced Thursday that Ohio will receive more than $100 million from the federal government to improve the state's electrical grid, targeting upgrades to existing transmission lines.
The federal government announced at an event in Columbus that it will invest $130 million to upgrade existing transmission lines, matched with the same amount of private investment from companies like First Energy and American Electric Power. This is part of a wider $1.9 billion investment in 26 states announced Thursday to rebuild more than 1,500 miles of transmission lines and deploy what the DOE calls "Grid-Enhancing Technologies" across nearly 21,000 miles.
The upgrades will mean more power will be able to flow through the lines at one time. The federal government project narrative said this will improve reliability, reduce congestion, accelerate interconnection of new load and generation, and enhance operational flexibility.
Officials stress the need for the grid to keep up with rapid growth in artificial intelligence technology and manufacturing. Central Ohio is a hub for data centers, but also new technology projects with the Intel semiconductor plant in New Albany and Anduril military drone factory in Pickaway County.
U.S. Deputy Energy Secretary James Danly said the funds will incentivize development for new technologies, but the government wants to also make energy more affordable.
"We are on the cusp of an absolutely extraordinary expansion of both technology and manufacturing in the United States, all of which requires this predicate basis of energy beforehand," Danly said.
New transmission lines have largely been the cause of increasing electric bills in Ohio. Danly said the U.S. won't be competitive if the existing grid isn't upgraded as well, allowing new energy capacity to power technology projects.
Danly said nuclear modules, revitalized nuclear power plants and natural gas plants are how the U.S. will achieve a goal of President Donald Trump's administration to create 400 gigawatts of new power by 2050. Currently, the U.S. electric grid has more than one terawatt of power capacity, or more than 1,000 gigawatts.
When asked by reporters, Danly didn't put an exact figure to potential reductions to utility bills. He said it will be difficult to predict exactly what rate impacts are going to be, but the aim is to make costs affordable for ratepayers.
"There is no doubt though that all things being equal, the more efficient the conductor is used, the less the cost of your transmission bill is going to be," Danly said.
Danly tried to frame the increasing demand for electricity as a good thing, because it is an indicator of economic growth. Many in central Ohio have told state utility regulators to reign in higher electric bills due to the increased demand.
"If you have a location in which nobody wants electricity, that's a place where nobody's trying to do anything. So the sign of a healthy economy is one in which you are constantly trying to meet demand that's rising, because that demand is the sign of all of those activities that require electricity," Danly said.
Public Utilities Commission of Ohio Chair Jennifer French, the chief utility regulator for the Buckeye State, said these advanced transmission technologies can provide additional capacity to the system without requiring new construction. She said this ensures the state responsibly and affordably enhances the grid.
"As we work collectively to meet the moment, the funding announced today will play an important role in the deployment of advanced transmission technologies across the country," French said.
The buildout is expected to take 48 months.
