PG&E secures $15bn loan guarantee for Project Polaris

Pacific Gas & Electric (PG&E) has secured a record $15 billion loan guarantee from the US Department of Energy (DOE). 

The loan guarantee, the largest in the history of the DOE’s Loan Programs Office, will enable PG&E to expand hydropower generation, battery storage, upgrade transmission capacity with reconductoring and grid-enhancing technologies, and establish virtual power plants across Northern and Central California.

These investments aim to meet growing power demand, increase electric reliability, and reduce costs for consumers. The initiative aligns with the Justice40 Initiative, ensuring that 40% of federal investment benefits reach disadvantaged communities. 

PG&E will prioritize projects in areas identified as disadvantaged, working with local governments, Native American tribes, and community-based organizations to maximize community benefits.

The company will also collaborate with the International Brotherhood of Electrical Workers (IBEW) Local 1245 through its PowerPathway programme to train and employ individuals from underserved groups in operational roles.