The cancellation of a $4.9B DOE loan guarantee for Invenergy’s Grain Belt Express shows how fragile long-distance power line development still is. (Reuters)
Without federal backing, developers say they can still raise private capital, but crossing multiple states without a coordinated national plan is proving challenging.
Why it matters: DOE estimates that every $1 invested could save up to $1.80 in fuel, generation, and storage costs, with as much as $490B in system savings by 2050. NERC has warned that 35 GW of new transfer capability must be built by 2033 to avoid shortfalls.
The reality: Projects often stall because states don’t see themselves as net winners. Pattern Energy’s 550-mile SunZia line took 16 years to get through permitting. Grid United is advancing five merchant lines, but each faces the same patchwork of state reviews and opposition.