Funds may be allocated to enhance the 400MW of virtual power plants in PG&E’s system. Credit: Alexander Steamaze/Shutterstock.

The US Department of Energy (DoE) has provided a conditional commitment for a $15bn loan to California-based electric utility PG&E.

If finalised by the DoE’s Loan Programs Office (LPO), the loan will support multiple energy projects in California and strengthen the state’s energy infrastructure. It will also help achieve federal and state climate goals.

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The enhancements to the transmission system will include advanced sensors, telemetry and controls to support two-way power flow and resilient grid operations during heat waves, high winds and other extreme weather events.

Enhancement will also include refurbishing PG&E’s hydroelectric infrastructure, which generates energy for four million homes with more than 3.8GW of electricity.

The initiative would expand and upgrade substations and transmission networks, and increase energy storage deployment with battery energy storage systems (BESS). PG&E currently has 4.2GW of battery storage under contract.

Funds may also be allocated to enhance the 400MW of virtual power plants in PG&E’s system and ensure two-way power delivery.

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Partially funding these projects with low-cost federal loans can save PG&E billpayers $1bn in net present value over the life of the financing.

PG&E CEO Patti Poppe stated: “Investments in a clean and resilient grid for northern and central California will have significant returns for our customers in safety, reliability and economic growth. The DoE loan programme can help us accelerate the pace and impact of this work.

“IBEW 1245 is encouraged by PG&E’s commitment to rebuild, retool and reinvest in energy infrastructure that is critical to California to achieve our electric reliability and climate resilience goals, and provide these benefits to PG&E customers at a lower cost.”