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US energy department backs grid expansion across eight states

The United States Department of Energy has announced plans to support transmission and distribution projects aimed at improving grid reliability and lowering electricity costs.

By the CEII Desk, from reporting by US Department of Energy

Key points

  • The Department of Energy is supporting the Tennessee Valley Authority with approximately $581 million for 84 projects.
  • The initiative is expected to add 2.5 gigawatts of grid capacity and create around 800 jobs.
  • A separate program will upgrade roughly 125 miles of transmission lines to further increase capacity.

What happened

The United States Department of Energy announced an initiative on October 13, 2026, to bolster power system reliability and reduce electricity expenses. According to the department, the plan involves backing the Tennessee Valley Authority to execute 84 transmission and distribution ventures spanning eight states.

The total investment reaches approximately $581 million. This figure comprises $250 million sourced from federal funds alongside roughly $331 million contributed by the applicant through cost-share arrangements. The funding falls under the Resilience Amplified initiative via the Grid Resilience and Innovation Partnerships program.

Expected outcomes

Officials estimate the developments will introduce about 2.5 gigawatts of fresh capacity to the network, helping to mitigate outages and support an estimated 800 jobs. The upgrades are intended to serve approximately 2.58 million customers, including both households and commercial entities.

In addition to these projects, the department previously selected the Tennessee Valley Authority for the SPARK program. Combined, these efforts represent a planned investment of nearly $741 million, including about $329.8 million in federal backing, designed to expand capacity by more than 4,300 megawatts.

What comes next

The SPARK program involves modernising approximately 125 miles of existing lines across Tennessee, Alabama, and North Carolina. This $159.7 million segment aims to deliver an additional 1,900 megawatts of transmission capacity.

Finalisation of federal support, schedules, and project scopes remains contingent upon formal agreements and necessary environmental, tribal, regulatory, and permitting evaluations.

Original reporting

This article draws on the following reports. Read them in full on the publishers’ sites.

Context from CEII

Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.

91.9% of people worldwide had electricity in 2024

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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.

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