[ST. PAUL, MN] – On Wednesday, October 18, 2023, Governor Tim Walz announced that the U.S. Department of Energy (DOE) selected three projects in Minnesota for $614 million to enhance the power grid’s ability to deliver affordable, clean energy to communities across the Midwest.

A grant for $464 million has been awarded to a proposal submitted by the Minnesota Department of Commerce for a grid innovation award. The application was created in partnership with the Great Plains Institute and two regional electricity transmission operators, the Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP).

“Minnesota is proud to lead the way on delivering affordable, clean energy to families across the Midwest,” said Governor Tim Walz. “This is an investment in our climate, community health, and family pocketbooks. I’m grateful Minnesota can play a significant role in this historic project and look forward to seeing the impact of this grant across our state and country.”

“Extreme weather events fueled by climate change will continue to strain the nation’s aging transmission systems, but President Biden’s Investing in America agenda will ensure America’s power grid can provide reliable, affordable power,” said U.S. Secretary of Energy Jennifer M. Granholm. “Today’s announcement represents the largest-ever direct investment in critical grid infrastructure, supporting projects that will harden systems, improve energy reliability and affordability—all while generating union jobs for highly skilled workers.”

“The DOE has provided us a historic opportunity to leverage federal clean energy funds to deliver reliable, affordable and safe energy that is increasingly generated by carbon-free and renewable energy resources,” said Minnesota Commerce Commissioner Grace Arnold. “The joint project delivers critical funds to expand our electric grid with new transmission lines and to reduce the burden of costs to utility ratepayers for adding those needed transmission lines. This collaboration could become a model for building multistate energy infrastructure into the future.”

The grant award will be used to help build five high-voltage transmission lines that will span seven states – Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. The federal grant is expected to spur over $1 billion in additional private sector investments, to reduce the costs to ratepayers across the region, and to provide communities with a range of benefits.

In coming weeks, the Minnesota Department of Commerce and its award partners will begin negotiations with DOE to finalize a funding agreement and the proposed projects. The process also requires approvals from the Federal Energy Regulatory Commission, MISO and SPP Board of Directors, and state regulatory bodies.

In addition to the Minnesota Department of Commerce’s award, Allete Inc. received a $50 million grant from the Department of Energy for the Minnesota Power HVDC Terminal Expansion Capability project to meet future energy needs while increasing the reliability and resilience of the regional grid. Xcel Energy was also selected for a $100 million award to boost its work to reduce and mitigate the threat of wildfires and ensure the resiliency of the grid through extreme weather.

The funds are part of the Grid Resilience and Innovation Partnerships (GRIP) Program, which seeks to enhance grid flexibility and improve the resilience of the power system against growing threats of extreme weather and climate change. Funded through the Infrastructure Investment and Jobs Act, the GRIP program leverages federal and private investments to ensure that communities across the nation have a reliable grid that’s prepared for extreme weather while also delivering affordable, clean energy and creating robust local opportunities for economic investment and jobs.