Energy Secretary Announces $2 Billion for Improving Electric Grid With Smart Technology

The U.S. Department of Energy has committed $2 billion for smart technology improvements to the nation’s electric grid, aiming to address concerns about artificial intelligence power usage, blackouts, and higher utility bills heading into the colder seasons.

During a press conference on Sept. 24, Energy Secretary Chris Wright said the investment would affect around 100 million Americans. Nationally, the spending would be distributed across 31 projects in 26 states and is expected to produce more than 23 gigawatts of electricity annually, enough to power about 16 million homes.

“This is a quick way to lower electricity prices and increase reliability: using fibers that are already in the transmission lines to analyze what’s the temperature out, what’s the wind out, how can we use this transmission line to distribute more power, but safely and only in the right conditions,” Wright said, speaking at a PPL Corp. facility in Allentown, Pennsylvania.

PPL owns one of those projects at the local level. It’s a $71.5 million effort to modernize an existing high-voltage transmission line across roughly 30 miles in northern Pennsylvania.

The state has a few data centers now online and a half-dozen more under construction, with grid improvements that could help facilitate them.

Future data center construction in the state has been slowed by an executive order issued by Pennsylvania Gov. Josh Shapiro in August, which affects the construction of all data centers that will use 25 megawatts or more, or enough energy to power about 18,000 homes.

Shapiro said the order was about “implementing the strictest standards in the nation for AI data centers—because I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies.”

Manufacturing Grid Components

AI has been in the spotlight in much of the recent electricity news, from the latest grid upgrades to a recent executive order by President Donald Trump.

The “bulk-power system” executive order, issued in late August, aimed to ensure that key components of the grid are not manufactured in nations under arms embargoes or other U.S. sanctions, particularly China, but are instead manufactured domestically whenever possible.

The text of the order said that the new restrictions were necessary because AI and AI-related production, including defense technology, has increased America’s “dependence on abundant, reliable electricity.”

Smart technology improvements to the grid can help reduce electricity waste and thereby free up more supply, but those improvements also increase vulnerability to hackers.

America’s energy needs have heightened the consequences of a “successful attack or supply disruption on the bulk-power system,” the order warned.

The concern is that components manufactured in regimes hostile to certain U.S. interests might contain “backdoors” or other features that make it easier to sabotage the grid, the order stated.

Ryan Norris, a senior fellow for energy policy at the Abundance Institute, said the threat is real.

“The administration is right to recognize that America’s bulk-power system is both critical infrastructure and a potential national-security vulnerability,” he told The Epoch Times.

“Our goal should not simply be to restrict potentially vulnerable foreign equipment, but to make the United States the best place in the world to design and build transformers, turbines, batteries, inverters, control systems, and other critical energy infrastructure,” he said.

Norris also called for wider measures, more electricity generation and capacity, and allowing more power from industrial concerns themselves, including “islanded microgrids, and ‘bring your own power’ arrangements that protect critical facilities while reducing pressure on the broader grid.”