Ohio's Rural Electric Cooperatives Seek $9.7 Billion in Funding Under Inflation Reduction Act to Cut Greenhouse Gas Emissions

Ohio's rural electric cooperatives, including Buckeye Power, are eyeing a share of $9.7 billion in funding provided by the Inflation Reduction Act (IRA) to reduce greenhouse gas emissions and save money. Buckeye Power, which serves 25 rural electric cooperative members, is particularly interested in these funds as it has a substantial reliance on coal, presenting an opportunity to transition to cleaner energy sources. The funding comes through the U.S. Department of Agriculture's New Empowering Rural America (New ERA) program, which supports projects to reduce emissions and promote renewable energy. These projects can receive grants of up to 25% of project costs as well as low- or no-interest loans.

Analyses from environmental groups suggest that transitioning from coal to renewables could lead to significant savings for the cooperatives' residential and business customers. Buckeye Power currently relies heavily on the coal-fired Cardinal Power Plant, but the marginal costs of operating coal plants now exceed the levelized all-in costs of new solar or wind generation. The Sierra Club estimates that Buckeye Power could save up to 4% on wholesale power costs by 2032 by replacing its coal generation with a mix of solar, wind, and battery storage. This funding opportunity is seen as a crucial step in reducing greenhouse gas emissions and making electricity more affordable for rural communities.

Source: Power Engineering