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US DOE announces USD5.25bn funding for grid projects to unlock 23 GW of power

The US Department of Energy (DOE) has announced plans to support 31 grid-improvement projects across 26 states, which are expected to make over 23 GW of additional capacity available to the grid (US DOE announcement, 24/09/2026). According to the DOE, the projects will receive USD5.25bn in total, comprising USD1.9bn in federal funding from the DOE and USD2.35bn in recipient cost-share funding. The investments are intended to enhance grid reliability and reduce electricity costs for approximately 100 million Americans, said the press release.

The selected projects are expected to involve the reconductoring or rebuilding of more than 1,500 miles (~2,400 km) of transmission lines, as well as the deployment of Grid-Enhancing Technologies (GETs) across nearly 21,000 miles (~34,000 km). Combined, these measures will make 23 GW of additional electricity capacity available, according to the DOE.

Utilities selected by the DOE to receive funding include Alabama Power, Duke Enerfgy Carolinas, Eversource Energy, Kit Carson Electric Cooperative and PPL Electric.

At least two of the planned projects aim to strengthen transmission connections between the Eastern and Western interconnections, which currently have limited capacity to exchange electricity.

Rising US electricity demand is creating a need for additional grid capacity and increasing the pressure to upgrade existing infrastructure. This growth is notably being driven by the development of AI and data centres, as well as the electrification of buildings and transportation. These investments are also needed to contain increases in energy prices in certain areas.