U.S. Department of Energy Announces $1.9 Billion Funding Opportunity to Accelerate Grid Modernization

The U.S. Department of Energy (DOE), through its Office of Electricity (OE), has announced a funding opportunity worth approximately $1.9 billion aimed at accelerating critical upgrades to the nation’s power grid. The initiative seeks to address rising electricity demand, enhance resource adequacy, and reduce power costs for households and businesses across the United States.

The funding will be provided under the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program. Projects selected through this opportunity will focus on delivering rapid and durable grid upgrades, particularly through reconductoring—replacing existing transmission lines with higher-capacity conductors—to significantly expand grid capacity and improve operational efficiency.

The initiative aligns with the executive order “Unleashing American Energy” issued by Donald Trump, which emphasizes strengthening the country’s energy infrastructure. Selected projects are expected to demonstrate how reconductoring, combined with Advanced Transmission Technologies (ATTs), can increase transmission capacity, lower electricity prices for consumers, and enhance the reliability and security of the national power grid.

Commenting on the announcement, Chris Wright stated that the initiative reflects the administration’s commitment to modernizing the grid to ensure reliable and affordable electricity for American families and businesses. He noted that upgrading the power grid is essential to meeting future energy demands while supporting economic growth.

Katie Jereza added that expanding grid capacity is critical to maintaining reliable power supply. She said the SPARK funding opportunity will help stabilize and optimize grid operations while strengthening the system to accommodate rapid growth in electricity demand.

The SPARK initiative builds on the earlier Grid Resilience and Innovation Partnerships Program (GRIP), which allocated up to $10.5 billion in competitive funding over five years to states, tribal governments, electric utilities, and other eligible entities to enhance grid resilience and innovation. Previous funding rounds covered fiscal years 2022–2023 and 2023–2024.

Under the new SPARK funding round, the focus will be on the rapid deployment of reconductoring projects and advanced transmission technologies designed to expand power transfer capacity, improve grid reliability, and lower energy costs for consumers while utilizing existing transmission corridors.

According to the DOE, concept papers for the funding opportunity must be submitted by April 2, 2026, while full applications are due by May 20, 2026. The department expects to announce selected projects in August 2026. An informational webinar about the program will also be made available on the Office of Electricity website by March 19, 2026.