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Department of Energy Allocates $360 Million to Link ERCOT to US Power Grid

Department of Energy Allocates $360 Million to Link ERCOT to US Power Grid
With backing from the US Department of Energy, the ERCOT power grid may soon have an external connection. (Driss Moussat / Getty Images)
  • PublishedOctober 4, 2024

In an effort to enhance the resilience of Texas’ power grid, the US Department of Energy (DOE) has announced plans to invest up to $360 million to connect the Texas Interconnection, operated by the Electric Reliability Council of Texas (ERCOT), to the larger US grid.

This new initiative aims to prevent a repeat of the catastrophic Winter Storm Uri in 2021, which caused power outages in millions of homes across Texas.

The planned 320-mile transmission line, named the Southern Spirit, will connect the isolated ERCOT grid to power networks in the southeastern US, enhancing reliability during extreme weather events. The line will have a capacity of 3,000 megawatts (MW), enough to power at least 600,000 homes, and is expected to create over 850 construction and 305 operational jobs.

ERCOT’s grid infamously failed during the 2021 freeze, leaving 4.5 million homes without power. The DOE’s investment is part of a broader $1.5 billion effort to upgrade the nation’s transmission infrastructure and improve the reliability of power delivery. According to US Deputy Secretary of Energy David Turk, this initiative is critical to meeting the country’s growing energy needs and ensuring a more interconnected and resilient grid.

The Southern Spirit project will help address the vulnerabilities exposed during Winter Storm Uri and give Texas access to electricity from other states during emergencies. While Texas has historically resisted connections to other grids to avoid federal oversight, the new line is designed to help without triggering increased federal regulation. Additionally, the project will boost Texas’ ability to buy and sell power with southeastern states, further integrating its energy system with the rest of the country.

CHRON and Axios contributed to this report.

Written By
Joe Yans