DOE Opens $237 Million Funding Opportunity for Grid Equipment Supply Chains

The U.S. Department of Energy (DOE) Office of Electricity on October 30, 2026, issued the Grid Supply Chain Alternatives to Lead Energy Dominance (SCALED) Notice of Funding Opportunity (NOFO), DE-FOA-0003641, making up to $237 million available to strengthen the domestic supply chain for critical electric grid components. The NOFO targets distribution and power transformers and other essential grid equipment – including circuit breakers, switchgear, insulators and battery energy storage systems – with funding split across two topic areas: 1) refurbishment and reuse of existing equipment, and 2) adoption of alternative, domestically sourced materials and subcomponents. Concept papers are due November 20, 2026, at 5 p.m. ET, and full applications are due February 8, 2027, at 5 p.m. ET.

Key Dates

Topic Areas

Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment ($50 Million). This topic area supports utilities and refurbishment facilities in reclaiming, repairing and recertifying grid equipment – such as transformers, circuit breakers and switchgear – that has been retired due to storm damage, end-of-life or other circumstances, returning functional components to inventory faster and more cost effectively than new procurement. DOE anticipates three to 20 awards ranging from $2.5 million to $15 million, with a minimum 50 percent cost share and project periods of up to 24 months.

Topic Area 2: Alternative Materials and Subcomponents ($187 Million). This topic area funds U.S. suppliers and manufacturers scaling up existing (Technology Readiness Level 6 or higher) domestically sourced alternative materials and subcomponents – such as electrical steel, ceramic bushings and copper windings – to reduce reliance on foreign-dominated inputs. Awards follow a two-phase structure: Phase 1 (up to 12 months) focuses on manufacturing readiness, supply chain formation and commercial alignment, and Phase 2 (up to 36 months) funds production scale-up, contingent on a Go/No-Go review. DOE anticipates seven to 50 awards ranging from $1 million to $25 million, with a minimum 50 percent cost share. Applications must include a Letter of Commitment from an upstream supply chain contributor.

Holland & Knight's Energy Technology Team stands ready to support the 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 SCALED NOFO.