US power line builders facing multi-state slog without federal help
- Oct 2, 2025
- 1 min read
How the cancellation of federal guarantees for HVDC lines reveals financing, regulatory, and regional planning risks.
A major proposed HVDC project (Grain Belt Express) in the U.S. lost its $4.9B DOE loan guarantee, prompting developers toward private financing. The article outlines how interregional HVDC transmission faces risk from changing federal policy, state‐level opposition, permitting/policy uncertainty, and long development timelines.
The DOE cancelled a loan guarantee for Invenergy's HVDC line, citing that conditions for support weren’t met.
The line was planned to connect Kansas and Missouri, crossing multiple grid regions (SPP, MISO, AECI), illustrating interregional nature.
Developers are now attempting to finance without federal backing, increasing project risk. The article also notes significant federal and regulatory obstacles in permitting, state‐by‐state approval, environmental reviews, and aligning incentives.
It mentions that long-distance lines like SunZia take over a decade (development + permitting) before construction.
“US power line builders facing multi-state slog without federal help.”
"Developing HVDC transmission is essential to add more energy to the grid and expand transmission capacity across the nation."
CONCLUSION
The article emphasize how fragile U.S. HVDC project finance can be when federal backing disappears. It paints a picture of developers forced into riskier private capital and longer timelines.
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