Nevada and Kentucky Receive $140M for Clean Energy Initiatives: Here's How It's Being Allocated
Source: Paul Gerke from Renewable Energy World
Stop me if you’ve heard this one: The U.S. Department of Agriculture Deputy Secretary visits a planned solar site in Pahrump...
While you come up with a punchline, clean energy advocates in rural Kentucky and Nevada are celebrating financial windfalls.
The Biden-Harris Administration has announced $140 million in funding for clean energy projects in rural areas of Nevada and Kentucky through the USDA’s Powering Affordable Clean Energy (PACE) program, which is supported by the Inflation Reduction Act. Back in May 2023, the USDA made $1 billion available via PACE to support new clean energy projects and energy storage in rural America. The program offers low-interest loans with up to 60% loan forgiveness to renewable energy developers, rural electric cooperatives, and other energy providers for projects involving wind, solar, hydropower, geothermal, and biomass.
USDA Deputy Secretary Xochitl Torres Small shared the news in Pahrump, an area that often faces wildfires and power outages. The Valley Electric Association plans to use an $80.3 million investment to build a 37-megawatt solar generation and storage system that will serve Pahrump and the Fish Lake Valley region. Valley Electric serves communities that are part of the Rural Partners Network (RPN), a USDA-led initiative that brings together federal, state, and local partners to help underserved communities secure federal funding. Launched in April 2022 and expanded in November 2022, the RPN now operates in 36 community networks across 10 states and Puerto Rico.
The remaining $140 million from the PACE program is earmarked for Kentucky, where it will fund four projects, including three new hydroelectric plants:
- Bluestem Energy Solutions TEC1 LLC will use approximately $6.6 million to build a solar power facility in Allen County, generating 5 MW of renewable energy.
- Lock 9 Hydro Partners LLC plans to invest around $19.3 million to construct a run-of-river hydroelectric plant on the Kentucky River, producing 3 MW of renewable energy for Jessamine County.
- Lock 10 Hydro Partners LLC will allocate about $18.9 million to build another run-of-river hydroelectric plant on the Kentucky River, also generating 3 MW for Madison County.
- Lock 13 Hydro Partners LLC will utilize approximately $17.7 million to develop a similar hydroelectric plant on the Kentucky River, generating 3 MW for Lee County, which is also part of the RPN.
“Rural communities deserve continued access to energy opportunities as the demand for clean energy grows,” Deputy Secretary Torres Small said. “The Biden-Harris Administration is committed to ensuring that efforts to combat climate change also boost local economies. These USDA investments will reduce costs for Americans and create well-paying jobs in rural areas for years to come.”
Renewable energy currently makes up a small portion of Kentucky’s energy portfolio, with hydropower accounting for almost all of the state's renewable output. In 2022, 11 hydroelectric dams in Kentucky generated about 6% of the state’s total electricity, while solar contributed just 0.2%.
Although renewable energy development in Kentucky has lagged behind some neighboring states, Nevada has seen significant growth since the Inflation Reduction Act became law just over two years ago. Nevada’s 2nd congressional district, represented by Republican Rep. Mark Amodei, has been particularly active in clean energy development, attracting over $6.6 billion in investments and creating more than 5,000 jobs.
Telkes’ Take: It’s encouraging to see the Biden-Harris Administration making substantial investments in clean energy for rural communities in Nevada and Kentucky. The $140 million in funding through the USDA’s PACE program is a significant step toward not only reducing energy costs but also creating jobs and fostering economic growth in underserved areas. While Kentucky has lagged in renewable development, these new projects, especially in hydroelectric power, could be a game changer for the state's energy mix. Nevada's continued progress highlights the potential for rural America to lead in the clean energy transition, proving that renewable energy can thrive across diverse landscapes. It's heartening to see efforts that directly benefit local communities while tackling climate change.
