The US Department of Energy (DOE) announced the approval of a $15 billion loan guarantee to Pacific Gas & Electric Company (PG&E) to fund clean energy initiatives, including hydropower generation, battery energy storage, and transmission upgrades. The announcement came just before Donald Trump resumes the presidency.
The loan, awarded under the Biden administration’s Investing in America agenda, is part of the DOE’s Energy Infrastructure Reinvestment (EIR) programme. PG&E, a natural gas and electric utility serving Northern and Central California, submitted its application in June 2023. The funds will support Project Polaris, which aims to address forecasted energy demand, enhance grid reliability, and reduce costs for PG&E’s 16 million customers.
“These projects will help us meet California’s growing energy needs while improving affordability and reliability for our customers,” PG&E stated.
This marks the first EIR project to reach financial close under the DOE’s Title 17 Clean Energy Financing Programme. By offering loans at lower interest rates than traditional financing, the DOE intends to minimise upward pressure on electricity costs for consumers.
PG&E plans to work with the International Brotherhood of Electrical Workers (IBEW) Local 1245 through its PowerPathway programme, providing training and employment opportunities for underserved groups in operational roles. The company expects the initiative to generate thousands of construction and operations jobs.
In addition, PG&E has committed to a Community Benefits Plan (CBP) that will engage with local governments, Native American Tribes, and community organisations to ensure meaningful benefits flow to disadvantaged communities. These efforts align with the Biden administration’s Justice40 Initiative, which aims to direct 40% of certain federal investments to underserved communities.
The EIR programme was established under the Inflation Reduction Act to modernise energy infrastructure and reduce greenhouse gas emissions. As of December 2024, the DOE has received 182 applications for projects totalling $278.9 billion in requested loans and guarantees.
