U.S. Department of Energy Announces $26.5 Billion Loan for Grid Modernization
WASHINGTON—The U.S. Department of Energy (DOE) has finalized a historic $26.54 billion loan package, facilitated through the Office of Energy Dominance Financing (EDF), aimed at bolstering grid reliability and delivering over $7 billion in electricity cost savings to customers in Georgia and Alabama. The investment supports subsidiaries of Southern Company, aligning with President Trump’s “Unleashing American Energy” Executive Order and funded by the Working Families Tax Cut.
Strengthening the Grid and Lowering Costs
According to Secretary of Energy Chris Wright, the loan package will lower energy costs, create jobs and enhance grid reliability. “Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring the American people have access to affordable, reliable, and secure energy for decades to approach,” Wright stated. He emphasized the administration’s commitment to reversing past energy policies and increasing reliable power generation.
Investment Details
The loans will support the construction and upgrade of over 16 gigawatts (GW) of firm, reliable power capacity. This includes:
- 5 GW of new natural gas generation
- 6 GW of nuclear power through uprates and license renewals
- Hydropower modernization
- Battery energy storage systems (BESS)
- Over 1,300 miles of new transmission and grid enhancement projects
The DOE estimates the loans will reduce Southern Company’s annual interest expenses by over $300 million, ultimately lowering electricity costs for customers. Southern Company announced plans for multiyear rate freezes in 2025.
Department of Energy Commitment
The DOE is committed to establishing a new standard for government energy financing, ensuring loans deliver affordable, reliable, and secure energy for all Americans. Southern Company is among the first utilities collaborating with the DOE and the Trump Administration to restore American energy dominance through strategic investments.
About Chris Wright
Chris Wright is the 17th Secretary of the U.S. Department of Energy, nominated by President Trump in November 2024 and confirmed by the Senate in February 2025. Prior to his role as Secretary, Wright served as CEO of Liberty Energy and held leadership positions at Pinnacle Technologies and Stroud Energy. He holds degrees from MIT and UC Berkeley [U.S. Department of Energy].
About Southern Company
Southern Company, through its subsidiaries Georgia Power and Alabama Power, is receiving the loan package to enhance transmission systems and grid reliability across Georgia and Alabama. [PRNewswire]