Biden’s New Energy Secretary Eyes Big Investment to Boost Clean Technologies, Harden Electric Grid

Ms. Granholm pointed to Texas and blackouts last year in California that she said illustrate how the U.S. electricity system struggles with increasing demand and extreme weather. In one of her first interviews since winning Senate confirmation Thursday, she also said that the demands of the modern economy—envisioned by the Biden team as running on low-emissions technologies—will require federal support for the energy sector.

“If we’re going to add the gigawatts of clean energy to the grid that we need to in order to do electric vehicles, in order to accommodate all of the data centers that are being added, we have got to invest…and harden the grid,” Ms. Granholm said, referring to the growth of the internet industry and cloud computing.

Ms. Granholm said one of her top priorities is to use the department’s loan program to jumpstart her work. The program offering federal loans and loan guarantees to start-ups and energy projects has $40 billion authorized by Congress but untouched by the Trump administration. That can be funneled into companies bringing new energy technologies to market, especially for power units, battery storage and grid improvements, among others.

The loan program has fallen out of favor at times, criticized especially by Republicans for supporting private-sector projects that they say don’t need the money or waste it with little return. Ms. Granholm said she wants to ensure the program’s accountability and that its money is used efficiently.

The Biden administration and Congress also must find ways later this year to streamline permitting and put up even more money specifically for grid improvements, she said.

Her department oversees U.S. scientific research and the country’s nuclear arsenal, along with many energy programs. It is the lead federal agency for securing the grid and ensuring reliable electricity.

That work is often hampered by a Balkanized grid, with states often fiercely defending regional control. Texas, for example, has spent years limiting its grid’s connection to the rest of the country to allow local leaders autonomy in regulating their electricity market.

Ms. Granholm said that, as part of nationwide improvements, she would like to see Texas add more electricity transmission connections with neighboring states so it has more options to get power during local shortages. But she also acknowledged state leaders would have to allow new connections.

“They have to decide whether they want the rest of the country to be able to offer a hand of help when they are in the midst of a crisis, like other states do,” she said.

Texas Gov. Greg Abbott,

a Republican, promised in a statewide address Wednesday to find answers to what went wrong to cause the blackouts. He said he would ensure state lawmakers enact fixes and he has so far focused publicly on potential solutions from within state government. His office didn’t immediately respond Friday to questions about Ms. Granholm’s comments.

Sen. John Cornyn

(R., Texas) told reporters in a conference call Thursday afternoon he is planning to introduce federal legislation aimed at helping pay for weatherization at power plants. Texas hadn’t required power plants there to follow federal recommendations on preparing for severe winter weather, widely cited as an underlying cause of this month’s crisis.

Mr. Cornyn’s plan would create a grant program that runs through the Energy Department. He didn’t say how much the program would cost or how it would be paid for, but did say it should be open to states beyond Texas.

“We’ve seen other parts of the country experience prolonged subzero weather, and one reason why they haven’t experienced rolling blackouts is because they are prepared for those, and clearly we need to get prepared in the event something like this happens again,” Mr. Cornyn said.

An Energy Department spokesman declined to comment on the idea. He added that Ms. Granholm supports weatherization as one of many ways to improve the grid along with adding and upgrading transmission.

Write to Timothy Puko at tim.puko@wsj.com