Utility Integration

Rural cooperatives seek $93B for IRA clean energy projects

Rural cooperatives seek $93B for IRA clean energy projects
(Image Credit: 123rf.com)

A novel Inflation Reduction Act program to bring economic development and lower-cost energy to rural communities received applications from 157 electric cooperatives, according to an announcement from the US Department of Agriculture.

The application requests represent more than twice the available funds in the $9.7 billion New ERA program, and came from rural cooperatives in 40 states and Puerto Rico. Together, the rural cooperatives’ clean energy plans represent an investment of over $93 billion in more than 750 clean energy projects.

GO DEEPER: Jose Zayas, EVP of Policy and Programs, American Council on Renewable Energy joined the Factor This! podcast to break down the key components of the historic Inflation Reduction Act, which includes $369 billion dedicated to clean energy and climate change.

The submitted proposals would reduce or avoid 127 million tons of greenhouse gas emissions, the equivalent of taking 24 million cars off the road for a year, and more than 50% of the letters of interest indicated an intention to serve distressed, disadvantaged, energy, or Tribal communities, according to USDA.

USDA announced the first phase of applications for the New ERA program in July 2023, asking rural electric cooperatives to submit pre-applications, or letters of intent. The window to submit letters closed on September 15. USDA will evaluate and score pre-applications, and will release more information as it processes letters of interest and applications, it said.

“This is an extraordinary moment for rural electric cooperatives,” said Sierra Club Senior Advisor Jeremy Fisher. “USDA set an extremely ambitious timeline for cooperatives to assess the highest value of these clean energy funds, and the cooperative community stepped up to deliver $93 billion in proposed investments. For years, cooperatives have lagged the transition, but today’s announcement shows us that there are leaders ready to drive benefits to their customers and communities.”