EnergyRe, a startup backed by real estate executives, is working to shore-up the country’s electrical grid.

NEW YORK – EnergyRe, launched by executives at real-estate company Related Cos., said it raised $1.2 billion from a group of European investors to build more transmission lines across the United States.

The deal comes as the Biden administration is pushing to modernize the national power grid, which is not equipped to handle the increasing amounts of renewable energy that the country is hoping to produce.

Already, surging electricity demand has strained the grid and led to more frequent outages in recent years.

“If we want to have reliable power, we need to have a new grid,” said Miguel Prado, EnergyRe’s chief executive. The high-voltage transmission lines needed to carry clean energy long distances are difficult to get permitted, in part because of fierce resistance from local residents.

The backlog is pushing more companies to launch transmission projects. The funding announced by EnergyRe will go toward such projects.

Overseas investors have been pouring money into U.S. companies to capitalize on the climate law, which included billions of dollars in clean-energy subsidies.

EnergyRe was created in 2020 with initial backing from executives at Related, who saw the need for clean power in cities to comply with local regulations and meet demand from big companies.

Related was founded by Miami Dolphins owner Stephen Ross and is known for using low-income housing tax credits for years before new clean-energy credits and transmission-funding programs were created.

Source: Wall Street Journal (12/04/23) Ramkumar, Amrith

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