April 18 (Reuters) - California's power companies PG&E , Edison International along with state energy agencies said on Thursday they have applied for $2 billion federal grant to increase grid capacity and deliver renewable energy.

The grant applied to the U.S. Department of Energy (DOE) if approved would be used to increase statewide transmission capacity, streamline the process of connecting renewable energy projects to the grid and boost supply while lowering costs.

The DOE's Grid Resilience and Innovation Partnerships (GRIP) Program is administering $10.5 billion in grants to enhance country's grid flexibility and resilience against growing threats of extreme weather and climate change. (Reporting by Arunima Kumar in Bengaluru; Editing by Vijay Kishore)