Grid Resilience and Energy Infrastructure Investment in South Carolina: A Strategic Opportunity Amid Horry County's Power Outages

In 2025, Horry County, South Carolina, has become a microcosm of the broader challenges and opportunities facing regional energy infrastructure in the United States. Recent power outages, triggered by severe storms, vehicle accidents, and aging systems, have exposed critical vulnerabilities in the county's electrical grid. However, these disruptions also underscore a growing investment opportunity: the modernization of utility infrastructure to enhance resilience, reliability, and economic competitiveness.

The Crisis in Horry County: A Catalyst for Change

Horry County's power outages in 2025 were not isolated incidents. Severe thunderstorms in late July left over 1,600 residents without power near the Highway 905 substation, while Santee Cooper reported 800 outages in Carolina Forest. A vehicle collision with a transformer in the Burgess substation area further compounded the issue, leaving 1,000 customers in darkness. These events highlight a systemic problem: the county's grid is increasingly strained by rapid population growth, climate-driven weather extremes, and outdated infrastructure.

The root causes are clear. Horry Electric Cooperative (HEC) attributes most outages to wind-related tree damage, a recurring issue in the region. While the grid is designed to withstand 65+ mph winds, indirect impacts—such as falling branches—remain a persistent threat. Additionally, the county's infrastructure struggles to balance the demands of a booming population with the need for redundancy during emergencies. For instance, emergency shelters and hospitals require uninterrupted power during hurricane season, yet the current system lacks the redundancy to guarantee this.

State-Level Initiatives: A Blueprint for Resilience

South Carolina's response to these challenges is both proactive and ambitious. The South Carolina Energy Security Act (Act 41), signed into law in May 2025, represents a landmark effort to streamline energy infrastructure development. Key provisions include:
1. Expedited Permitting: A six-month review window for Energy Infrastructure Projects (EIPs), reducing bureaucratic delays.
2. Rate Stabilization: The Electric Rate Stabilization Act (eRSA) allows utilities to adjust rates quarterly based on cost fluctuations, ensuring affordability while incentivizing investment.
3. Renewable and Nuclear Expansion: Competitive procurement for solar and energy storage, alongside support for small modular reactors (SMRs), diversifies the energy mix.
4. Grid Modernization Funding: $5.4 million in 2025 federal grants, administered by Santee Cooper, targets automated switches and self-healing grid technologies in Horry County.

HEC's collaboration with the U.S. Department of Energy's Grid Deployment Office (GDO) is a case study in this strategy. A $779,823 grant from the Grid Resilience State and Tribal Formula Grants program is funding automated switches in Conway, a rapidly growing hub. These devices can isolate faults and restore power within minutes, reducing outage durations from hours to seconds. For businesses like Big D's BBQ Trough, a local restaurant, this means fewer revenue losses and operational continuity.

Economic Impact: Beyond Power Lines

The economic benefits of grid upgrades extend far beyond utility bills. Santee Cooper's 2024 annual report highlights a $3.1 billion capital investment in industrial projects, creating 857 jobs. The Lake Moultrie Regional Water System, part of Santee Cooper's infrastructure, contributes $3.8 billion annually to the economy. These figures demonstrate how energy resilience directly supports economic development.

In Horry County, the grid modernization project is projected to attract new businesses by ensuring reliable power for data centers, manufacturing, and logistics hubs. For example, the Camp Hall Commerce Park, a Santee Cooper initiative, is projected to generate $7.9 billion in economic impact by 2035. A resilient grid is a prerequisite for such growth, as companies increasingly prioritize regions with robust infrastructure.

Investment Opportunities: Where to Allocate Capital

For investors, South Carolina's energy infrastructure presents a compelling case. Key opportunities include:
1. Utility Stocks: Santee Cooper (SCANA) and Dominion Energy (DOM) are central to the state's grid upgrades.
2. Grid Modernization Firms: Companies like ABB and Siemens, which supply automated switches and smart grid technologies, stand to benefit from South Carolina's $5.4 million in 2025 federal grants.
3. Renewable Energy Developers: The state's push for solar and energy storage creates demand for firms like NextEra Energy (NEE) and SunPower.
4. Infrastructure Funds: Private equity and public infrastructure funds targeting Southeastern U.S. utilities are well-positioned to capitalize on South Carolina's $10.8 million in 2024 grid resilience projects.

The ROI for these investments is clear. HEC estimates that automated switches will reduce outage durations by 80%, translating to millions in avoided economic losses for businesses and households. Meanwhile, the South Carolina Energy Security Act's expedited permitting process accelerates project timelines, enhancing returns for developers.

Conclusion: A Resilient Future Requires Strategic Investment

Horry County's power outages are a wake-up call, but they also illuminate a path forward. South Carolina's aggressive grid modernization efforts, backed by federal funding and state legislation, are creating a blueprint for infrastructure resilience. For investors, this represents a unique opportunity to align capital with long-term economic growth, public safety, and climate adaptation.

As the state continues to attract industrial investment and expand its renewable energy capacity, the energy infrastructure sector will remain a cornerstone of its economic strategy. By targeting utilities, grid modernization firms, and renewable developers, investors can position themselves at the forefront of a transformative industry.

In the end, the lessons from Horry County are universal: resilient infrastructure is not just a utility concern—it's a driver of economic prosperity. For those who act now, the rewards will be both measurable and enduring.