American Electric Power(AEP) received a $1.6 billion loan guarantee from the U.S . Department of Energy that will allow it to renovate more than 8,000 kilometers of transmission lines in Indiana, Michigan, Ohio, Oklahoma and West Virginia.
The renovation of 8,000 km of transmission lines
According to AEP estimates, its customers plan industrial expansions that will require an additional 24 gigawatts by 2030, driven by sectors such as data centers, artificial intelligence and advanced manufacturing.
In addition to the technical impact, the measure will have direct economic consequences: AEP estimates a savings of US$275 million in financing costs, which will translate into more competitive tariffs for end users. It is also projected to create at least 1,100 jobs during the construction phases.
According to Bill Fehrman, president and CEO of AEP, this guarantee improves the reliability of the electric system and generates regional economic benefits. “This agreement reflects our commitment to connecting our communities with modern, affordable energy solutions,” he said.
The first 160 kilometers of modernized sections will bewill be located in Ohio and Oklahoma. After that, new projects will be progressively activated in the rest of the states involved.
The financial support comes from the Loan Programs Office(LPO), an extension of the Department of Energy designed to promote the nation’s critical infrastructure. It is also the first loan of its kind approved under the current administration, and represents a replicable model for other companies seeking to modernize their grids.
AEP operates the country’s largest electricity transmission network, with more than 64,000 kilometers, and serves more than 5.6 million customers. This investment is part of a broader US$54 billion plan between 2025 and 2029 to respond to the new energy demands of its operating areas.
Source and photo: AEP
