Pacific Gas & Electric Company (PG&E) is poised to secure up to $15 billion in federal loans to strengthen its power grid and expand clean energy resources across central and northern California, as announced on Tuesday. The funding, part of the U.S. Department of Energy’s (DOE) Energy Infrastructure Reinvestment Program, represents one of the largest loan guarantees under the initiative.
The DOE’s conditional commitment will be disbursed in phases over several years to finance critical infrastructure projects. These include efforts to boost hydropower production, expand battery storage capabilities, improve transmission capacity, and develop virtual power plants throughout PG&E’s network.
PG&E initially applied for the loan in June 2023, and the utility projects that partially financing its clean energy initiatives through the federal program could result in $1 billion in savings for its customers over the loan’s duration.
PG&E CEO Patti Poppe emphasized the benefits of these investments, stating, “Investing in a clean and resilient grid for the central and northern regions of California promises substantial benefits for our customers, particularly in terms of safety, reliability, and economic development. The DOE loan program can significantly fast-track our efforts, which will support thousands of living-wage jobs, all while reducing costs for our customers.”
Environmental advocates, including the Sierra Club, welcomed PG&E’s grid modernization and clean energy plans. Julia Dowell, a Sierra Club organizer, described the initiative as “groundbreaking,” highlighting its potential to stabilize energy rates, create clean energy jobs, and reduce harmful emissions. She also noted the opportunity for PG&E to upgrade its aging infrastructure with environmentally friendly and fire-resistant technology.
The DOE’s Loan Programs Office aims to finalize the commitment before the end of President Joe Biden’s current term next month, aligning with the administration’s push to advance clean energy infrastructure and combat climate change.
