PG&E Secures $15 Billion Loan for Climate Resilience and Power Grid Strengthening

The U.S. Department of Energy has offered a $15 billion conditional loan to California's PG&E for climate resilience and grid enhancements. This financing aims to support energy projects, including hydroelectric refurbishments and energy storage expansions, potentially saving PG&E customers $1 billion. The move follows increased power demand and wildfire threats.


Devdiscourse News Desk | Updated: 17-12-2024 23:34 IST | Created: 17-12-2024 23:34 IST
PG&E Secures $15 Billion Loan for Climate Resilience and Power Grid Strengthening
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The U.S. Department of Energy has announced a conditional loan offer of up to $15 billion to PG&E, a major Californian electric utility, aimed at bolstering climate resilience projects and enhancing the power grid. This initiative, led by President Joe Biden's administration, reflects ongoing efforts to distribute substantial financing under the Loan Programs Office.

The loan aims to accelerate PG&E's clean energy initiatives in northern and central California, enhancing safety, reliability, and economic growth, according to CEO Patti Poppe. The funding will support multiple energy projects, including refurbishing hydroelectric infrastructure, expanding substation and transmission networks, and increasing the deployment of energy storage.

Partially funded by federal loans, the projects might save PG&E bill payers approximately $1 billion over the loan's lifespan. PG&E plans to raise $2.4 billion from investors through a stock offering, amid soaring electricity demand and escalating risks from extreme weather and wildfires.

(With inputs from agencies.)

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