A high-profile transmission project intended to deliver wind and solar energy across the Midwest has hit a major roadblock. The U.S. Department of Energy (DOE) has officially withdrawn its conditional $1.1 billion loan guarantee for the Grain Belt Express, a 800-mile high-voltage direct current (HVDC) transmission line planned to carry renewable energy from western Kansas to Illinois and other eastern states.
As reported by Solar Power World, the decision was communicated to project developer Invenergy Transmission on July 25. The DOE cited project delays and unmet conditions from the original loan application as the reason for the termination. While the loan had not been officially closed or disbursed, the loss of federal support raises new questions about the project’s timeline and financing strategy.
The Grain Belt Express was designed to deliver up to 4,000 MW of wind and solar power to customers across Missouri, Illinois, Indiana, and other states, helping to decarbonize the regional grid. Although the project has received regulatory approvals in key states, it has also faced legal challenges, landowner opposition, and construction delays.
Invenergy responded to the DOE’s decision by affirming its commitment to the project, stating that it will continue development through private funding sources. The company emphasized that construction in Missouri is still expected to begin in 2025, with Phase 1 targeted for completion by 2027.
This setback comes as transmission infrastructure remains a critical barrier to U.S. renewable energy expansion. The Grain Belt Express is one of several major interregional projects expected to unlock gigawatts of stranded wind and solar capacity in resource-rich but infrastructure-poor areas of the country.