The U.S. Department of Energy has announced an approximately $1.9 billion funding opportunity aimed at accelerating upgrades to the nation’s power grid, as electricity demand rises sharply due to expanding digital infrastructure, electrification, and industrial load growth.
The funding initiative, launched through the Department’s Office of Electricity (OE), will support projects under the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program. The effort is designed to rapidly increase transmission capacity by upgrading existing infrastructure rather than constructing entirely new transmission lines, a process that can often take a decade or longer due to permitting requirements and land-use disputes.
According to the Department of Energy, the program will focus on reconductoring, which involves replacing existing transmission wires with higher-capacity conductors capable of carrying greater volumes of electricity. When combined with other Advanced Transmission Technologies (ATTs), these upgrades are intended to expand grid capacity, improve operational efficiency, and strengthen the reliability and security of the U.S. electric system.
The initiative comes as electricity consumption in the United States is expected to rise significantly in the coming years. Rapid expansion of AI and cryptocurrency data centers, along with broader electrification of heating and transportation, is pushing power demand higher after two decades of relatively flat consumption. Utilities across the country have already begun expanding transmission infrastructure and other grid components to accommodate this shift.
Officials say the SPARK program aims to help utilities respond to these pressures while controlling costs and improving system resilience.
“For too long, important grid modernization and energy addition efforts were not prioritized by past leaders,” said 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.”
The funding opportunity aligns with President Donald Trump’s Executive Order “Unleashing American Energy,” which aims to expand domestic energy production and modernize infrastructure supporting the nation’s power system.
Officials also emphasized the operational benefits of upgrading existing transmission assets.
“The United States must increase grid capacity to meet demand, and ensure the grid provides reliable power—day-in and day-out,” said Katie Jereza. “Through this SPARK funding opportunity, we will stabilize and optimize grid operations to strengthen it for rapid growth.”
The SPARK Program builds on the Department’s Grid Resilience and Innovation Partnerships (GRIP) Program, which authorized up to $10.5 billion in competitive funding over five years to strengthen transmission infrastructure, deploy advanced grid technologies, and improve system resilience. Earlier GRIP funding rounds covered fiscal years 2022–2023 and 2023–2024.
Unlike conventional transmission expansion projects, the new funding specifically prioritizes rapid-deployment technologies capable of increasing transfer capacity using existing rights-of-way. By upgrading conductors and installing advanced transmission technologies on existing towers, utilities can expand grid capability more quickly than constructing entirely new lines.
The urgency behind the program reflects mounting operational pressures across the U.S. power system. As demand continues to climb and extreme weather events place additional strain on infrastructure, many regional grids are operating closer to their capacity limits. During peak heat or cold events, system operators often rely on every available megawatt to maintain system balance.
Programs such as SPARK aim to address these challenges by enabling faster infrastructure upgrades that expand transfer capability while enhancing reliability and resource adequacy.
The Department of Energy has set April 2, 2026 as the deadline for concept papers, with full applications due by May 20, 2026. The agency anticipates announcing selected projects in August 2026, while an informational webinar outlining program details is expected to be posted on the Office of Electricity website by March 19, 2026.
The funding effort represents one of the latest federal initiatives focused on strengthening transmission infrastructure as electricity demand accelerates and the U.S. power sector adapts to a more complex and energy-intensive economy.