On Monday, President Joe Biden announced a $7.3 billion investment aimed at 16 electric cooperatives across 23 states to support the development and expansion of clean energy. The funding, drawn from the Inflation Reduction Act and distributed through the Department of Agriculture’s Empowering Rural America program, is intended to enhance reliable electricity supplies while creating jobs in the clean energy sector.
Biden unveiled this initiative during a visit to Westby, Wisconsin, where he highlighted that around $580 million would be allocated to the Dairyland Power Cooperative for solar, wind power, and energy storage projects. He explained that nonprofit electric cooperatives were chosen because they lack the financial resources that private utility companies have to modernize their energy infrastructure. For years, these cooperatives were unable to access tax credits to make clean energy more affordable.
According to Biden, the funding is expected to provide affordable electricity to over 5 million homes and create 20,000 jobs in the states receiving the investment. The White House further clarified that the job creation would include approximately 4,500 permanent positions and 16,000 construction roles. The $7.3 billion will also be bolstered by an additional $5.1 billion in private-sector investments.
Many of these electric cooperatives not only supply power to areas with limited access to electricity but also provide high-speed broadband services in certain regions. Although the renewable energy industry has faced challenges in conveying the economic benefits of clean power to rural communities, states like California and Texas are already seeing positive outcomes by combining solar energy with power storage, helping to prevent blackouts and compensate for coal plants going offline.
