U.S. Energy Department Announces $1.9 Billion for Grid Upgrades

The U.S. Energy Department on March 12 announced a $1.9 billion funding opportunity aimed at accelerating upgrades to the nation’s electric transmission system as electricity demand rises across the country. The initiative focuses on rapidly increasing the capacity of existing power lines while strengthening grid reliability and lowering electricity costs for households and businesses.

The funding opportunity, titled Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades, supports projects that replace existing transmission conductors with higher-capacity lines capable of carrying more electricity along existing routes. By upgrading infrastructure within current rights of way, the effort seeks to deliver faster capacity expansion compared with building new transmission lines while reducing siting and permitting challenges.

The program also supports deployment of advanced transmission technologies designed to improve the operational efficiency of the electric system. These technologies can increase the transfer capability of existing infrastructure, enhance system flexibility, and strengthen reliability as electricity demand continues to grow.

The department aims to demonstrate how reconductoring combined with modern grid technologies can quickly expand transmission capacity, improve resource adequacy, and reduce electricity costs for consumers.

The funding opportunity builds on the energy department’s Grid Resilience and Innovation Partnerships program, which made up to $10.5 billion available over five years to support projects that strengthen grid resilience and advance transmission innovation. Earlier funding rounds covering fiscal years 2022 through 2024 supported projects led by states, tribes, utilities, and other grid stakeholders.

Concept papers for the new funding opportunity are due April 2, while full applications must be submitted by May 20. The department expects to announce project selections in August.