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The U.S. Department of Energy’s Office of Electricity (OE) just announced a $1.9 billion funding opportunity to accelerate “urgently needed” upgrades to the nation’s power grid. The OE says these investments will meet rising electricity demand and resource adequacy needs, while lowering electricity costs for American households and businesses.
“Projects selected through the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) funding opportunity will deliver fast and durable upgrades to the grid with real results,” the agency adds.
In line with the existing “Unleashing American Energy” initiative, the newly-funded projects will demonstrate how reconductoring (i.e., replacing existing power lines with higher capacity conductors) paired with other advanced transmission technologies (ATTs) can expand grid capacity.
The effort is also focused on increasing operational efficiency, lowering prices for consumers and improving overall system reliability and security. “The United States must increase grid capacity to meet demand, and ensure the grid provides reliable power—day-in and day-out,” said OE Assistant Secretary Katie Jereza in the announcement. “Through this SPARK funding opportunity, we will stabilize and optimize grid operations to strengthen it for rapid growth.”
Continuing the Mission
The OE says this new opportunity builds on the Grid Resilience and Innovation Partnerships (GRIP) Program, which provided up to $10.5 billion in competitive funding over five years to states, tribes, electric utilities and other eligible recipients to strengthen grid resilience and innovation. The previous two GRIP funding rounds covered FY 2022-2023 and FY 2023-2024 funding.
“Today’s announcement continues the mission of the GRIP Program under the SPARK funding opportunity, focusing on the rapid deployment of reconductoring and other ATTs that expand transfer capability, strengthen reliability and resource adequacy, and reduce costs for consumers,” the OE says, “all while making use of existing rights of way.”
In a detailed description of the opportunity, the OE says successful applications will highlight how reconductoring and other key ATTs “expand the ability to transfer power between regions of the country, strengthen reliability and resource adequacy, and reduce consumer cost impact while utilizing existing rights of way.” It plans to prioritize projects like:
- Reconductoring with advanced conductors.
- ATTs that can increase the usable capacity of existing assets in real time.
- Large-scale, cross-regional transmission upgrades and coordinated planning.
The key topic areas include grid resilience, smart grid and grid innovation, the latter of which includes “high-impact, innovative projects that enhance grid reliability and resilience, with a focus on transmission systems that facilitate development of new large loads,” the OE explains. Concept papers are due April 2, 2026, and full applications are due May 20, 2026. DOE plans to make its selections in August 2026.
More Public-Private Partnerships Needed
This new opportunity puts the spotlight on public-private partnerships in an area where the U.S. needs faster execution on grid upgrades. DOE’s own analysis shows that, if current retirement schedules and incremental additions remain unchanged, most regions will face unacceptable reliability risks within five years. It also says that the nation’s electrical power grid will be “unable to meet expected demand for AI, data centers, manufacturing and industrialization while keeping the cost of living low for all Americans.”
In Public/Private Partnerships Must Drive U.S. Energy Success, energy expert David Blackmon writes about the need for such partnerships in the energy sector. Citing an INGAA Foundation study, he says more than $1 trillion in new capital must be invested in pipelines and other midstream assets between now and 2052.
“That number is eye-watering in its own right,” Blackmon writes, “but now several new reports project that much and more must be invested in the nation’s power grid in just the coming five years if America is to win the ongoing AI race with China.”
