Electrical equipment at a Duke Energy substation in Seminole, Florida, January 2021. Archive photo, not a funding recipient identified in this announcement: Philipp Michel Reichold / Wikimedia Commons, CC BY-SA 4.0. Cropped.
The U.S. Department of Energy opened a $237 million funding opportunity Friday to expand domestic manufacturing and strengthen supplies of equipment used in the nation’s electric grid.
The October 30 announcement targets two areas: refurbishing and reusing existing grid equipment, and developing alternative materials and components sourced and made in the United States.
The money is being offered through a funding competition. The announcement does not identify selected recipients or say the full amount has already been awarded or spent.
Keeping equipment in service and expanding U.S. supply
Up to $50 million would support projects that extend the use of existing grid equipment and materials through refurbishment and reuse. Up to $187 million would support greater use of domestically sourced alternatives to imported materials and subcomponents.
The program addresses the hardware behind electricity delivery, including the supply chain for distribution and power transformers, grid components and materials. Its focus is manufacturing capacity and equipment supply, rather than a direct rebate on household utility bills.
DOE said the investments are expected to produce an estimated $125 million in annual utility savings and retain an estimated $50 million a year in the U.S. economy that otherwise would go to foreign suppliers. Those are the department’s projected benefits, not savings already achieved.
Applications begin with a November deadline
Applicants must submit a concept paper by November 20 to qualify to submit a full application. Full applications are due February 8, 2027, according to DOE.
The opportunity, called Grid Supply Chain Alternatives to Lead Energy Dominance, or Grid SCALED, is the first under a broader program authorized to provide up to $375 million for domestic grid-equipment supply chains.
DOE said additional funding announcements are anticipated in 2027, including work on next-generation technologies such as solid-state transformers and common equipment configurations intended to make manufacturing more efficient.
The immediate action is the opening of the $237 million opportunity. The selection of projects, actual funding awards and delivery of the projected savings remain future steps.
JBizNews Desk | WASHINGTON
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