Rural Electric Cooperatives Urge Admin to Honor Clean Energy Grants
Representatives from several Colorado rural electric cooperatives recently traveled to Washington, urging the new administration to honor promised grants for rural energy projects. This comes as the U.S. Department of Agriculture (USDA) has allocated $10.7 billion to support rural electrification and rural energy initiatives through the Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs.
The New ERA program has already awarded funding to 49 rural electric cooperatives for various projects, including wind, solar, battery storage, coal plant retirements, and grid stabilization. Meanwhile, the PACE program funded 59 organizations, including rural electric cooperatives, to build solar and battery facilities and boost energy supply without significant price hikes.
Rural electric cooperatives, often owned by ratepayers and with older equipment, have fewer financial resources compared to for-profit utilities. They play a crucial role in providing electricity to rural communities, which often have limited access to rural energy sources. The USDA's funding aims to address these disparities and promote rural energy adoption in rural areas.
Eric Eriksen, CEO of the San Luis Valley Rural Electric Cooperative, welcomed the funding. His cooperative, serving over 7,500 people across seven rural counties in southern Colorado, was awarded $1.7 million to construct two 1-megawatt solar farms in January 2025. However, President Donald Trump's executive order pausing climate and energy spending initially affected billions of dollars of funding for rural electric cooperatives, including the San Luis Valley co-op.
The USDA's New ERA and PACE programs have shown significant potential in supporting rural electrification and rural energy projects. With the release of promised funding, rural electric cooperatives like the San Luis Valley co-op can now proceed with their rural energy plans, benefiting both their members and the environment.
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