By Jessica Holdman
SCDailyGazette.com
COLUMBIA — The organization that supplies electricity to South Carolina’s 19 power cooperatives is in line for up to $500 million in federal grants and low-interest loans to help cover the cost of solar and nuclear energy for some 2 million power customers over the next two decades.
Central Electric Power Cooperative, Inc., is among several organizations selected for a portion of federal dollars from the landmark clean energylaw signed by President Joe Biden in 2022 (titled the Inflation Reduction Act).
The U.S. Department of Agriculture selected Central’s application for funding. How much of the $500 million the cooperatives ultimately receive is still under review. That figure won’t be known until the spring, according to cooperatives spokesman Avery Wilks.
The funding comes as state leaders grapple with how to increase power production in the rapidly-growing Palmetto State.
“South Carolina must produce more power to accommodate its explosive growth,” Central CEO Rob Hochstetler said in a statement. “This federal funding helps us meet those needs in a way that produces less carbon emissions while keeping energy costs as low as possible for our consumers.”
The funding can be used to cover 25% of a project’s total cost.
Central is hoping for $306.5 million in grants and $126.3 million in loans to partially cover the cost of purchasing power from the Catawba Nuclear Station in York County, Wilks said.
Central signed a deal last year to buy 150 megawatts from the Catawba nuclear plant, giving the cooperatives access to about 18% of the unit’s capacity, which is licensed to produce power through 2043. The federal dollars would ultimately reduce the price paid by cooperative members for that agreement.
“Finalizing this deal will help South Carolina stay attractive to new industries and help keep the power on during the times we need it most. This agreement will pay dividends for years to come,” Hochstetler said when the deal was announced.
Central also is hoping for $52.3 million in grants to help it buy power from three solar farms proposed in Georgetown County and $69 million in grants for 200 megawatts worth of other solar over the next 20 years, Wilks said, as well as $14.4 million in grants to cover the cost of batteries used to store solar-generated power.
Jessica Holdman writes about the economy, workforce and higher education. Before joining the S.C. Daily Gazette, she was a business reporter for The Post and Courier. S.C. Daily Gazette is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
