Funding for critical grid upgrades to come through new federal grants

By EPN Staff

The U.S. Department of Energy’s Office of Electricity (OE) is providing $1.9 billion in grants to upgrade the nation’s power grid. The funding will come through the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program. 

Faced with increased demand for electricity and aging infrastructure, the nation’s grid system needs higher-capacity conductors and other advanced transmission technologies to increase output and improve system flexibility, efficiency, reliability and affordability.  

“For too long, important grid modernization and energy addition efforts were not prioritized by past leaders,” said U.S. Secretary of Energy Chris Wright. “Thanks to President Trump, we are doing the important work of modernizing our grid so electricity costs will be lowered for American families and businesses.” 

Since issuing his Executive Order Unleashing American Energy, the Trump Administration has prioritized American energy resource development through investments in infrastructure, by promoting research and development and by removing regulatory barriers. 

Why it matters

Much of the U.S. electricity grid — made up of transmission and distribution lines, power transformers and substations — was built 50-75 years ago and struggles to keep up with increased power demand from data centers, electric automobiles, industrial demand and building electrification. Energy demand could increase by 25% by 2030, according to experts. 

The aging infrastructure is also less efficient and is vulnerable to cybersecurity threats and blackouts due to storms and wildfires. It is insufficiently flexible to accommodate a decentralized resource portfolio that includes fossil fuels, renewables, and battery storage. Given these and other shortcomings, the American Society of Civil Engineers (ASCE) gave the U.S. energy infrastructure a D+ grade on its 2025 Report Card for America’s Infrastructure. 

The SPARK initiative is part of the Grid Resilience and Innovation Partnerships (GRIP) Program funded through the 2021 Infrastructure Investment and Jobs Act. Grants can be used to support grid resilience, smart grid upgrades, and grid innovation, including:

• Expand the ability to transfer power between areas of the country to keep the lights on during disruptive events. 
• Improve the dependability of electricity through smart grid technologies that provide real-time monitoring and optimization of grid components. 
• Develop new transmission systems that can handle large loads with the ability to transfer between grid regions across the country. 

“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. “Through this SPARK funding opportunity, we will stabilize and optimize grid operations to strengthen it for rapid growth.”

Grid operators, electricity generators, non-profit and for-profit organizations, state, local, and tribal governments and institutions of higher education may apply by submitting a concept paper by April 2 and a full application by May 20. Applicants can access an EO webinar for more details. 

The bigger picture 

The electricity grid includes some 7,000 power plants, more than 642,000 miles of high-voltage lines, transformers that increase or decrease voltage for transmission, and 6.3 million miles of distribution lines, which run between substations and end users. The grid provides over 3,800 terawatt hours of electricity to 162 million customers each year. Households constitute 37% of generation, commercial 36%, and industrial 26% of generation.