The U.S. Department of Energy is making $237 million available for projects intended to strengthen domestic manufacturing and refurbishment of electric-grid equipment, as rising computational power demand adds pressure to the country’s electricity infrastructure.
Energy Secretary Chris Wright unveiled the first round of funding under the department’s new Grid Supply Chain Program on October 30. The initiative is authorized to provide as much as $375 million in federal grants for manufacturing electrical distribution equipment, power transformers, other grid components and essential materials.
“We are investing in American-made technologies and modernizing our grid to reduce reliance on foreign suppliers and deliver affordable, reliable, electricity,” Energy Secretary Chris Wright said.
Two funding priorities
The initial funding opportunity is being offered through the Grid Supply Chain Alternatives to Lead Energy Dominance, or Grid SCALED, program. The DOE is asking applicants to submit concept papers by November 20, followed by full applications due on February 8.
The first category will provide up to $50 million for projects that refurbish or reuse transformers and other grid components. The DOE said that extending the life of existing equipment could make inventory available faster and at lower cost than manufacturing replacement products from the beginning.
A second category will direct up to $187 million toward identifying and integrating U.S.-sourced alternative materials and subcomponents used by American grid-equipment manufacturers. The stated objective is to reduce dependence on foreign products while helping manufacturers secure the inputs needed to produce grid hardware.
- $50 million is earmarked for transformer and grid-component refurbishment or reuse.
- $187 million is designated for alternative materials and subcomponents sourced in the United States.
- The broader program is authorized for up to $375 million in federal grants.
Who can apply
Eligible applicants must be domestic entities legally formed in the United States and must maintain a physical location for business operations in the country. Organizations may apply as either a primary applicant or a subrecipient.
| Eligible applicant | Program focus |
|---|---|
| Private companies | Manufacturing, refurbishment and supply-chain projects |
| Universities and nonprofits | Research, development and project participation |
| State and local governments | Domestic grid-infrastructure initiatives |
| Indian Tribes | Eligible grid supply-chain projects |
The DOE said the investments are designed to improve national power-grid resilience and support domestic manufacturing of key components. The department’s announcement links the effort to growing demand for computational power, while the two funding tracks focus on increasing equipment availability and reducing exposure to overseas suppliers.
“America should never have to rely on foreign suppliers to keep the lights on,” said Katie Jereza, assistance secretary of the Office of Electricity.
Project proposals will now move through the DOE’s application process, beginning with the November 20 concept-paper deadline. The department’s broader authorization leaves room for additional funding beyond the initial $237 million opportunity.
