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⚖️ Trump Administration changes clean energy funding

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DOE Approves $1.6 Billion to Modernize Midwest Power Grid

The U.S. Department of Energy finalized a $1.6 billion loan guarantee to upgrade 5,000 miles of transmission lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The project, managed by American Electric Power (AEP), won’t create new routes but will enhance existing ones to carry more electricity, easing congestion and improving efficiency. Representing roughly 13% of AEP’s network, the modernization aims to strengthen reliability while reducing customer costs. Energy Secretary Chris Wright said the move would help “ensure lower electricity costs across the Midwestern region.”

Trump Administration Eyes Clean Energy Cancellations

The approval comes amid uncertainty, as the Trump administration reviews energy projects initiated before the presidential transition. While the AEP loan survived, other renewable projects—like a $467 million Minnesota grant to unlock 28 gigawatts of solar and wind capacity, and a $630 million California grid upgrade—are on the chopping block. The contrast raises questions about why certain modernization efforts are spared while others face cancellation, particularly as both rely on similar technologies to boost existing grid efficiency without building new infrastructure.

The Opportunity for Energy and Climate Startups

For startups in energy storage, smart grids, and grid analytics, this DOE loan underscores a key trend: policymakers increasingly favor upgrades that maximize existing infrastructure rather than build from scratch. That shift creates opportunities for companies offering advanced conductors, dynamic line rating systems, and grid optimization software. As Washington debates the future of clean energy investment, founders in the energy space should position themselves around “efficiency-first” solutions that align with both fiscal restraint and the growing demand for modernized, resilient power systems.

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