The US Department of Energy (DOE) has announced an additional $967 million in funding to modernize the country's electricity infrastructure through a grant programme targeting states, territories and tribal communities.

The funding will be distributed through the Grid Resilience State and Tribal Formula Grant programme, which supports investments to improve electricity reliability, strengthen grid resilience and address growing power demand.

According to the federal agency, the funding will support locally identified projects to upgrade electricity infrastructure, prevent service disruptions and improve the performance of transmission and distribution systems.

The DOE also links these investments to its objective of helping reduce electricity supply costs for American households and businesses.

Funding to modernize electricity networks and reduce power outages

The grant programme supports measures designed to strengthen electricity infrastructure against events that could disrupt grid operations, including wildfires, storms and other natural disasters.

Eligible activities include upgrading power lines and other grid equipment, deploying monitoring and control technologies, undergrounding certain electricity infrastructure and improving grid resilience against extreme weather events.

The funding can also support technological solutions aimed at preventing outages and reducing their impact on electricity consumers.

The DOE states that funded projects should help improve electricity system performance and ensure reliable power supplies for communities and businesses.

The additional funding comes as growing electricity demand requires further investment in grid capacity, modernization and system operations across the US.

Funding to be distributed among states, territories and tribal communities

The additional $967 million will be allocated through the federal formula grant programme, which distributes resources to eligible recipients according to predetermined criteria.

The allocation mechanism considers factors including population, land area, the likelihood and severity of events that could disrupt electricity supplies, and historical expenditure on mitigating these risks.

Unlike conventional competitive grant programmes, the formula-based mechanism establishes allocations for states, territories and tribal communities, which can subsequently direct the funding towards projects addressing their electricity infrastructure needs.

The programme prioritizes measures that benefit communities by improving access to reliable and affordable electricity.

The initiative is managed by the DOE's Office of Electricity, with support from the National Energy Technology Laboratory (NETL).

US seeks to strengthen electricity reliability amid growing demand

US Secretary of Energy Chris Wright said the investments would provide resources directly to states, territories and tribal communities to help lower electricity costs and strengthen power reliability.

Meanwhile, Katie Jereza, Assistant Secretary for the Office of Electricity, highlighted that the funding would help optimize electricity systems, prepare them for future demand growth and support the deployment of technologies capable of reducing long-term electricity supply costs.

The DOE considers grid modernization necessary to improve the electricity system's ability to respond to disruptions and maintain reliable service for consumers and businesses.

Through the programme, funding can support measures tailored to the needs of individual jurisdictions, taking into account their infrastructure conditions and exposure to risks that could affect electricity networks.

Additional funding under an existing federal programme

The announced funding forms part of the Grid Resilience State and Tribal Formula Grant programme, an existing federal mechanism designed to strengthen electricity networks across the US.

The programme provides federal resources to states, territories and tribal communities, which subsequently identify and select projects to be implemented within their jurisdictions.

Therefore, the $967 million announcement represents additional funding made available through the programme, rather than the award of that amount to specific grid modernization projects.

Eligible recipients can access allocation information and application instructions through the Department of Energy's official channels.

With this additional funding, the US aims to expand investment in modernizing electricity infrastructure, reducing power outages and strengthening grid resilience in response to growing demand and risks affecting electricity system operations.