DOE Opens a $237 Million Grid SCALED Funding Call for Transformer Supply Chains, With Concept Papers Due November 20
- Power Electronics Regulatory Solid State Transformers
Marin Holt
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- 7 minutes read
- Funding opportunity: $237 million
- Refurbishment and reuse track: up to $50 million
- Alternative materials track: up to $187 million
- Program authorization: up to $375 million
- Concept papers due: November 20, 2026
The U.S. Department of Energy opened a $237 million funding opportunity on October 30, 2026, for domestic manufacturing of electric grid components. DOE calls the program Grid Supply Chain Alternatives to Lead Energy Dominance, or Grid SCALED. Applicants must submit a concept paper by November 20, 2026, to qualify for a full application. Full applications are due February 8, 2027. The Office of Electricity in Washington runs the program.
The money splits into two tracks. Up to $50 million goes to projects that refurbish and reuse existing grid equipment and materials. Up to $187 million goes to projects that increase the use of alternative materials and subcomponents sourced and made in the United States. DOE said the second track cuts dependence on imports.
DOE estimates the projects will deliver about $125 million in annual utility savings. It also expects to keep about $50 million per year in the U.S. economy that would otherwise go to foreign suppliers. The announcement did not publish the method behind either figure. It gave no award count and no cap per project.
Grid SCALED is the first call under the DOE Grid Supply Chain Program. That program is authorized to provide up to $375 million for domestic manufacturing of distribution and power transformers, grid components and materials. DOE expects additional funding announcements in 2027. Those will cover next-generation technologies, including solid-state transformers, and common configurations that streamline manufacturing.
Katie Jereza, assistant secretary for the Office of Electricity, said that America should never have to rely on foreign suppliers to keep the lights on. Energy Secretary Chris Wright said the department is investing in American-made technologies to reduce reliance on foreign suppliers.
T&D World tied the call to the August executive order on foreign-made bulk-power equipment. Executive Order 14421, signed August 26, 2026, declared a national emergency over the foreign supply of transmission equipment. It lets the Energy Secretary prohibit equipment tied to a covered foreign entity. POWER Magazine reported that nothing is prohibited until DOE acts. The implementing rules are due by December 24, 2026. The order covers transmission-level transformers, breakers, relays, industrial control systems, grid-connected inverters and battery storage.
T&D World also cited a J.D. Power October report. Average monthly residential utility bills that include electricity ($188) total $409 in Q3 2026. That is up 2.8% on an annualized basis from Q3 2025. Electricity remains the largest utility expense in the data, rising 5.6% from Q3 2025 ($178).
Why It Matters
A $237 million funding opportunity is small next to the transformer orders utilities place for data center load. Its value is the signal. DOE will pay for refurbishment and for substitute materials, not for new transformer plants. The reuse track of up to $50 million is the first federal money aimed at returning retired grid equipment to service.
For power-electronics firms, the 2027 round matters more than this one. DOE named solid-state transformers as a target for that round. It also wants common configurations to streamline manufacturing. Three weeks is a short window for a concept paper. The executive order behind the program has no rules yet. Bidders must price a ban whose scope stays unknown until December 24.
Critical Perspective
The $237 million call pays for refurbishment and substitute materials, not for the new transformer capacity that data center load needs. Executive Order 14421 has no implementing rules until December 24, so applicants are designing supply chains around a ban whose scope is unknown. Two weeks ago DOE put $50 million of Defense Production Act money behind 290 MW of reconductoring, which shows the recent scale of federal grid supply-chain awards against a transformer market measured in billions. If utilities keep ordering from Hitachi Energy and Hyundai Electric while the concept papers sit in review, what share of the $375 million program reaches a unit installed on the grid?
Sources
- U.S. Department of Energy: Energy Department Announces Over $230 Million Funding Opportunity to Strengthen America’s Grid Supply Chain and Lower Electricity Costs (Oct. 30, 2026)
- T&D World: DOE Launches $237M Grid SCALED Initiative to Boost Domestic Supply Chains, Lower Power Costs (Oct. 30, 2026)
- POWER Magazine: Executive Order 14421, Managing the Risk of a Ban on Chinese Grid Equipment (Oct. 27, 2026)
