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US Department of Energy invests $1.9 billion in power grid upgrades

The U.S. Department?of Energy will invest $1.9 billion in order to 'accelerate upgrades' of the?power grids?in?the?country, said it on Thursday.

The U.S. is expected to see a sharp increase in power consumption this year and next. This will be due to the rapid growth of AI and cryptocurrency data centers, as well as increased electrification for heating and transportation. This demand, however, has led to higher electricity prices for a large part of the country.

The DOE said that the funds would be used for preparing for an increase in demand as well as to lower the electricity costs of American homes and businesses.

The projects selected for funding must'showcase how replacing or reconductoring existing?power?lines with higher capacity conductors combined with transmission technology can strengthen the?nation?s electric grid.

Utilities are adding power lines and other components?to the grid as data centers 'lift U.S. energy consumption out of two decades flat demand. (Reporting and editing by Pranav mathur in Bengaluru.

(source: Reuters)