Basin Electric Power Cooperative in Montana is among the first wave of 16 rural electric cooperatives that will receive subsidies from the USDA’s Empowering Rural America (New ERA) to leverage projects for carbon-free energy in rural communities across 23 states. The majority of new electricity sources that will be funded are solar and wind power.

The funds will fund “renewable energy projects” totaling 1400 megawatts across Montana, North Dakota and South Dakota. A press release states that the efforts will reduce greenhouse gas pollution by an estimated 2.2 million tons annually.

In total USDA estimates these projects will avoid more than 43 million metric tons of greenhouse gas emissions annually.

USDA estimates New ERA government funding will spur the creation of an estimated 4,500 long-term jobs and 16,000 short-term jobs.

As a result of these projects, renewable capacity supply for rural co-ops will increase by 35 percent from 26 to nearly 35 gigawatts, with wind and solar capacity rising by more than 60 percent from 14 gigawatts to 23 gigawatts.

A few examples of clean energy projects providing real savings to co-op members are Dairyland Power Co-operative, which is expecting rates 42 percent lower over ten years compared with business as usual; and Great River Energy, which expects cost reductions by $30 million annually. More member savings can be found below, compiled from the USDA’s announcement. 

“With the help of the New ERA program, rural cooperatives across the country are leading the way in demonstrating how to deploy clean energy to deliver affordable and reliable power for the benefit of their member-owners — and in ways that really work for the communities they serve. The diversity of investments and approaches taken by co-operatives is a testament to the power of the co-op model in fostering innovation tailored to local community needs,” said RMI electricity expert Uday Varadarajan.

 The clear winner in terms of technology was utility-scale solar, however an encouraging number of co-ops will also be investing in utility-scale battery storage systems, demand-side resources, and transmission improvements, which can support additional clean energy investments in the future. 

RMI (founded as Rocky Mountain Institute) provided resources to applicants in the form of a series of webinars, bootcamps, and a financial modeling tool to support ambitious and efficient project designs by co-ops. We have also published a Community Benefits Catalog to support applicants for federal funding in the creation and execution of community benefit plans (CBPs), to ensure every project supports the long-term growth and financial welfare of local communities.