The U.S. Department of Energy has awarded $1.9 billion to 31 utility projects under the SPARK program to add 23 GW of transmission capacity. These upgrades aim to address data center power demands by modernizing existing lines rather than building new corridors, with total project costs reaching $5.3 billion.
Texas is experiencing record-breaking solar and wind energy production, but the state's grid infrastructure is not equipped to handle the surge. Without upgrades to the transmission network, congestion and curtailments are expected to increase, resulting in wasted renewable energy. The Electric Reliability Council of Texas (ERCOT) curtailed 5% of wind generation and 9% of solar generation in 2022, but these numbers could rise to 13% and 19% respectively by 2035. The US Energy Information Administration suggests upgrading the transmission system and implementing battery storage to mitigate the issue. Failure to address the grid's limitations could pose challenges for Texas' energy supply in the future.