Powering California’s Future: PG&E’s $15 Billion Green Energy Boost

This massive investment aims to expand hydropower, enhance battery storage, upgrade transmission capacity, and enable virtual power plants across PG&E's service area.

 


Image for illustration purposes.

The U.S. Department of Energy has granted Pacific Gas & Electric Company (PG&E) a $15 billion loan guarantee to revolutionise Northern and Central California’s energy landscape.

Project Polaris, as it’s known, is set to tackle forecasted load growth, boost electric reliability, and reduce costs for PG&E’s 16 million customers. It’s the first Energy Infrastructure Reinvestment (EIR) project to reach financial close under a new approach tailored for regulated, investment-grade utilities.

The loan’s lower interest rate is designed to ease pressure on electricity costs for consumers. PG&E must demonstrate that these financial benefits will be passed on to customers and communities served.

In partnership with the International Brotherhood of Electrical Workers, PG&E will train and employ members of underserved groups through its PowerPathway programme. The project is expected to create thousands of construction and operations jobs.

PG&E’s Community Benefits Plan aims to boost engagement with local stakeholders, including governments, Native American Tribes, and community organisations. Many projects will be located in disadvantaged communities, supporting the Biden-Harris Administration’s Justice40 Initiative.

This investment is part of a broader push towards clean energy and infrastructure modernisation. It represents a significant step in California’s journey towards its goal of 100% clean electricity by 2045.

Source: US Department of Energy