Government grants money for solar, nuclear power in South Carolina as Biden leaves office
The state’s electric cooperatives, which serve some two million people in South Carolina, are increasing their capacity to provide energy as a result of a more than $500 million pledge by the federal government.
The U.S. Department of Agriculture has approved Central Electric Power Cooperative’s request for money to acquire energy from solar farms and battery storage, as well as capacity from an existing nuclear plant near Rock Hill.
All told, the federal grants and loans help add 695 megawatts of energy for the cooperatives.
That supplements approximately 5,800 megawatts of energy capacity the Santee Cooper power company has to supply customers of cooperatives and the company’s direct customers, according to a spokesman for South Carolina’s electric cooperatives. Santee Cooper is the main supplier of energy to electric cooperatives and their customers.
The money, obtained from the Biden administration through the Inflation Reduction Act, will help boost power reserves and continue to diversify sources of power to include solar and battery-supplied energy. Solar, unlike traditional forms of energy such as coal, does not produce greenhouse gas pollution and is not subject to fluctuations in the prices of material like coal. The Biden administration advocated for solar and other alternative forms of energy to supplement traditional energy sources.
South Carolina utility officials say they are in need of more capacity to supply existing needs and to meet future demands as industries and new residents come to the state. A key concern, in addition to growth, is whether enough energy will be available in South Carolina during extreme cold snaps, like one expected next week.
Utilities and the cooperatives, which get energy from power companies like Santee Cooper and supply it to customers, say they badly need new sources of energy. The energy projects being paid for with federal money will generate enough electricity to power nearly 800,000 homes, while reducing carbon pollution by 2.2 million tons a year, according to the U.S. Department of Agriculture.
The issue took center stage in the Legislature this past week as utilities urged lawmakers to approve a sweeping energy bill that they say would make it easier to boost the state’s power supplies.
“South Carolina must produce more power to accommodate explosive growth,’’ according to a news release quoting Rob Hochstetler, chief executive at Central Electric Power, which represents the state’s electric cooperatives. “The federal 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 customers.’’
Approval of the federal money was finalized during the last week of President Joe Biden’s term in office. The funds will mostly come in the form of grants.
Projects to be completed with the federal funding include two separate solar farms in Georgetown County, which are being done with Santee Cooper and provide about 200 megawatts of power. The federal government is providing $52 million for the projects, known as the Lambert and Georgetown solar farms..
In addition, nearly $69 million will go for 200 megawatts of additional solar projects that have not yet been put together. Another $14.4 million has been approved to buy 150 megawatts from battery storage systems in the future, according to Central Electric.
More than $360 million, most of it grant money, will go toward paying for 150 megawatts of nuclear energy capacity from the Catawba atomic power station south of Charlotte.
Avery Wilks, a spokesman for the S.C. Electric Cooperatives, said a deal to obtain nuclear power for the cooperatives was struck last year, but the money will help pay for that, which will keep costs down for customers.
South Carolina is served mainly by two investor-owned utilities and the state-owned Santee Cooper power company. Santee Cooper is the main supplier of power for South Carolina’s 19 electric cooperatives, although some comes from Duke Energy.
This story was originally published January 18, 2025 at 7:00 AM.
