U.S. Secretary of Energy Chris Wright on Feb. 25 announced the Department of Energy’s Office of Energy Dominance Financing has closed a historic $26.5 billion loan package that will support two wholly owned subsidiaries of Southern Company -- Georgia Power and Alabama Power.
The two loans will build or upgrade over 16 gigawatts of firm reliable power to the electrical grid.
This includes 5 GW of new gas generation, 6 GW in nuclear improved through uprates and license renewals, hydropower modernization, battery energy storage systems and over 1,300 miles of transmission and grid enhancement projects.
These loans represent the largest government investment aimed at directly lowering consumer energy costs and increasing grid reliability, DOE said.
Once all funds are received through the program, the loans are estimated to reduce Southern Company’s interest expenses by over $300 million per year, helping expedite lower electricity costs for customers, the agency said.
