March 13, 2026

DOE Releases $1.9 Billion Funding Opportunity for Grid Upgrades and Expansion

Holland & Knight Energy Technology Blog
Taite R. McDonald | Katherine G. Hantson | Joseph Greenberg | Molly Ross | Katherine D. Speece | James Steinbauer | Halley I. Townsend | Mackenzie A. Zales | Robby Phillips
energy technology blog

The U.S. Department of Energy's (DOE) Office of Electricity (OE) on March 12, 2026, issued the Speed to Power Through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) Notice of Funding Opportunity (NOFO). SPARK makes available up to $1.9 billion from the Infrastructure Investment and Jobs Act (IIJA) and is the third round of funding under the Grid Resilience and Innovation Partnerships (GRIP) Program. With topic areas for investments in grid resilience, smart grid and grid innovation, SPARK seeks to fund projects that utilize reconductoring or other infrastructure upgrades and/or other Advanced Transmission Technologies (ATTs) to measurably stabilize, optimize and expand grid capacity in the face of rising electricity demand nationwide.

DOE requests projects that demonstrably advance one or more of the following benefits:

  • capacity increase and deliverability
  • reliability and resource adequacy
  • affordability and consumer benefit
  • replicability and scale-up framework

Domestic for-profit and nonprofit entities, public utility commissions (PUCs), institutions of higher education, and state, local and Tribal governments and agencies are all eligible to apply depending on the topic area (outlined further below).

Key Dates and Deadlines

NOFO Issue Date

March 12, 2026

Informational Webinar*

March 19, 2026

Required Concept Papers Due

April 2, 2026

Full Applications Due

May 20, 2026

Selections Anticipated

August 2026

*Details to follow

Topic Areas, Eligibility and Funding Information

Topic Area 1: Grid Resilience

This topic area supports projects that replace existing conductors, deploy ATTs such as dynamic line rating, and otherwise upgrade and expand transmission systems to strengthen grid reliability and resilience. While electricity generators and storage operators are eligible to apply, DOE is not interested in applications that propose construction of a new electric-generating or large-scale battery storage facility.

 

Eligible Entities (Domestic Only)

Note: Per statute, 30 percent of funding is set aside for small utilities, defined as those which sell no more than 4 million megawatt-hours (MWh) of electricity per year.

  • Electric grid operator
  • Electricity generator
  • Transmission owner or operator
  • Distribution provider
  • Fuel supplier

Total Funding

$427 million in fiscal year (FY) 2026

Approximate Number of Awards

Five to 10 awards of approximately $10 million to $100 million per award

Minimum Cost Share Required

50 percent of the total project costs (for small utilities, minimum cost share requirement is 25 percent of total project costs)

Estimated Project Period

Up to 48 months

Topic Area 2: Smart Grid

This topic area seeks projects that utilize ATT deployment, reconductoring as a smart grid enabler, and/or communications and cybersecurity integration to improve existing transmission and subtransmission systems, while delivering measurable affordability benefits to ratepayers through reduced congestion costs, deferred capital investment and improved efficiency of existing assets.

 

Eligible Entities (Domestic Only)

  • Institutes of higher education
  • For-profit organizations
  • Nonprofit organizations
  • State and local government entities
  • Indian Tribes

Total Funding

$614 million in FY 2026

Approximate Number of Awards

25 to 40 awards of approximately $10 million to $50 million per award

Minimum Cost Share Required

50 percent of the total project costs

Estimated Project Period

Up to 48 months

Topic Area 3: Grid Innovation Program

This topic area seeks high-impact, innovative projects that enhance grid reliability and resilience, with a focus on transmission systems that facilitate development of new large loads. Through transmission expansion and upgrades, ATT deployment, and cross-regional coordination and planning, projects will promote a robust, integrated grid capable of supporting substantial new electrical demand while reaping cross-jurisdictional benefits.

 

Eligible Entities (Domestic Only)

Prime Recipients:

  • States or a combination of two or more states
  • Tribal governments
  • Local governments
  • PUCs

Subrecipients:

  • Institutes of higher education
  • For-profit organizations
  • Nonprofit organizations
  • State and local government entities
  • Tribal governments

Total Funding

$862 million in FY 2026

Approximate Number of Awards

Three to eight awards of approximately $100 million to $250 million each

Minimum Cost Share Required

50 percent of the total project costs

Estimated Project Period

Up to 48 months

The NOFO notes that across all topic areas, projects that prioritize "connection to intermittent generation sources that are not in line with the Administration's goals of energy dominance" or which allocate significant budget toward consumer rebate or incentive programs are not of interest to DOE.

Next Steps for Interested Applicants

The SPARK NOFO is made available through the eXCHANGE platform, and applicants must register to the following services to apply:

  1. eXCHANGE
  2. System for Award Management (SAM) (must obtain a Marketing Partner Identification Number (MPIN) and Unique Entity Identifier (UEI))
  3. grants.gov (for updates only; submissions will not be accepted here)

Applicants may submit up to one concept paper and application per topic area. For each application, applicants are required to submit a concept paper of no more than six pages (including one cover page and a one-page addendum) by April 2, 2026, at 5 p.m. ET. Full applications are due on May 20, 2026, at 5 p.m. ET.

Holland & Knight's Energy Technology Team stands ready to support with drafting and submission of concept papers and applications. Interested applicants may reach out to the authors with any questions or assistance in applying to the SPARK NOFO.

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