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Financial tools designed to upgrade and build transmission lines to deliver clean, affordable energy may be triggering excitement in the energy industry.
President Joe Biden’s new infrastructure law is one of the first federal financing tools to be put in place under the U.S. Department of Energy’s (DOE) Building a Better Grid Initiative, which includes more than $20 billion of investments.
Modernizing The American Electric Grid
An electrical grid is a complex interconnected network system that moves electricity to consumers after it is generated at power plants.
The grid is made up of a generating plant, transmission lines, substation, transformers, distribution lines and the consumer. An efficient electric grid guarantees an efficient power supply.
Dubbed the transmission facilitation program (TFP), the infrastructure investment is expected to make federal funding available for the construction of new large-scale transmission lines and upgrade existing ones.
In the long run, TFP is meant to help expand and modernize America’s electric grid and create good-paying jobs to deliver clean, affordable and reliable energy to businesses and homeowners. It is also aimed at helping Biden achieve his goal of a national grid run on 100% clean electricity by 2035.
The infrastructure investment is expected to kick start more than 20 major transmission projects and create more than 600,000 new transmission-related jobs — and an additional 640,000 jobs from new clean energy generation projects enabled by the new transmission lines.
The DOE also announced new financial tools to help build high-voltage electric transmission lines, while the Department of Transportation (DOT) issued new guidance that enables the use of existing rights of way to facilitate the siting of transmission lines.
The DOE is seeking public input on the structure of the $2.5 billion TFP, which will offer three forms of “facilitation” that could bolster the construction of new, replacement and upgraded high-capacity transmission lines: capacity contracts, loans and public-private partnerships.
An Opportunity For Power Players?
For companies like National Grid plc NG, IES Holdings Inc. IESC and Ocean Power Technologies Inc. OPTT, the investment may present opportunities to play a critical role in upgrading and building transmission lines to deliver affordable clean energy.
Another company that states it is more than ready to capitalize on this infrastructure investment is Orbital Energy Group Inc. OEG.
The Texas-based company is a diversified infrastructure services platform providing engineering, design, construction and maintenance services to customers in the electric power, telecommunications and renewable industries.
Orbital says it is dedicated to maximizing shareholder value by striving to exceed customers’ expectations, building a diverse workforce and making a positive difference in employees’ lives and the communities it operates in.
The company’s electric power businesses include:
The company’s telecom business is:
The company’s renewable business is:
Dedicated to reducing the carbon footprint through the services it provides, the company reports that it has realigned its business strategy toward renewables.
Orbital recently announced it entered into a share purchase agreement with nZero Group Ltd., under which Orbital will sell its U.K. gas business, Orbital Gas Systems Ltd., to nZero Group.
nZero Group will assume operations of Orbital’s U.K. and European business, including sales and distribution of the GasPT technology. Orbital will retain potential licensing and royalty rights to certain GasPT projects and its proprietary VE Technology.
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