The U.S. Department of Energy on Oct. 30 announced a $237 million funding opportunity to boost American manufacturing and strengthen supply chains for critical electric grid components.
The investment is expected to deliver an estimated $125 million in annual utility savings and keep an estimated $50 million per year in the U.S. economy that would otherwise go to foreign suppliers, it said.
"The investments will help facilitate the reliable flow of electricity for American families and businesses and position the U.S. as a global leader in foundational technologies, by incentivizing the refurbishment and reuse of critical equipment and encouraging the adoption of alternative materials and subcomponents that are sourced and made in America. These efforts will lower costs, strengthen grid reliability, and meet growing electricity demand," it said.
This funding opportunity will support projects in two key areas:
- Up to $50 million will be provided to projects that promote greater refurbishment and reuse of existing grid equipment and materials;
- Up to $187 million will be provided to projects that will increase the use of alternative materials and subcomponents sourced and made in the U.S, reducing dependence on imports.
The Grid Supply Chain Alternatives to Lead Energy Dominance (Grid SCALED) funding opportunity is the first of DOE’s Grid Supply Chain Program, which is authorized to provide up to $375 million to strengthen domestic supply chains for the manufacturing of distribution and power transformers, grid components, and materials.
Additional funding announcements are anticipated in 2027 to strengthen domestic supply chains for next-generation technologies, including solid-state transformers, and promote common configurations to streamline manufacturing.
Applicants must submit a concept paper by November 20, 2026, to qualify to submit a full application. Full applications are due by February 8, 2027.
