Power Decarbonization
Funding Tracker
The following federal programs include funding opportunities to decarbonize the power sector through transmission and electric grid improvements, clean-firm power production, and rural electrification. While the program tracker below includes select federal funding programs targeted directly at power sector decarbonization, additional federal incentives may be applied to decarbonize the power sector, including tax credits, funding sources with broader applicability such as the Climate Pollution Reduction Grants (CPRG) program.
Explore by the 3 funding sectors:
Transmission and
Electric Grid
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Clean Firm
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Rural Electrification
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Sector 1: Transmission and Electric Grid
Funding Programs:
Transmission Siting and Economic Development (TSED) Grants Program
Authorization: IRA
Agency: DOE
Office: GDO
Funding Amount: $760 million
Description: Financial support for two distinct categories of activities related to the development of new or upgraded interstate and offshore transmission lines: siting and permitting, and economic development.
Eligible Applicants: For siting and permitting activities: siting authorities, defined as Tribal, state, or local governmental entities with the authority to make a final determination regarding the siting, permitting, or regulatory status of a “covered transmission project”; For economic development activities: siting authorities or any Tribal, state, or local government entity proposing to undertake a project in a community impacted by the construction or operation of a “covered transmission project”
Transmission Facilitation Program
Authorization: IIJA
Agency: DOE
Office: GDO
Funding Amount: $2.5 billion
Description: Revolving fund program that will provide Federal support to overcome the financial hurdles in the development of large-scale new transmission lines and upgrading existing transmission as well as the connection of microgrids in select States and U.S. territories through three financing tools: capacity contracts, loans, and public-private partnerships.
Eligible Applicants: Transmission developers
Grid Resilience and Innovation Partnerships (GRIP)
Authorization: IIJA
Agency: DOE
Office: GDO
Funding Amount: $10.5 billion
Description: Funds to support increasing resilience in the face of extreme disruptions, enabling data-rich and flexible grid performance, and spurring innovation at all stages of project ideation and execution. This program includes three topic areas: Grid Resilience Grants, Smart Grid Grants, and Grid Innovation Program.
Eligible Applicants: Topic Area 1: electric grid operators, electric storage operators, electricity generators, transmission owners or operators, distribution providers, fuel suppliers; Topic Area 2: for-profit entities, non-profit and not-for-profit entities, state and local governmental entities, Tribal nations, institutions of higher education; Topic Area 3: a State, a combination of 2 or more States, an Indian Tribe, a unit of local government, a public utility commission
Grid Resilience State and Tribal Formula Grants Program
Authorization: IIJA
Agency: DOE
Office: GDO and NETL
Funding Amount: $2.3 billion
Description: Funding to strengthen and modernize America’s power grid against wildfires, extreme weather, and other natural disasters that are exacerbated by the climate crisis.
Eligible Applicants: States, territories, and federally recognized Indian tribes, including Alaska Native Regional Corporations and Alaska Native Village Corporations
Transmission Facility Financing Program
Authorization: IRA
Agency: DOE
Office: GDO
Funding Amount: $2 billion
Description: Direct loan authority for facility financing. This program is currently under development and more information will be available in the coming months.
Eligible Applicants: This program is currently under development and more information will be available in the coming months
Sector 2: Clean Firm
Funding Programs:
Civil Nuclear Credit Program
Authorization: IIJA
Agency: DOE
Office: GDO
Funding Amount: $6 billion
Description: Funding to preserve the existing U.S. reactor fleet, to bid on credits to support their continued operations for reactors projected to close for economic reasons where closure will lead to a rise in air pollutants.
Eligible Applicants: Owners or operators of commercial U.S. reactors
Advanced Reactor Demonstration Program
Authorization: IIJA
Agency: DOE
Office: OCED
Funding Amount: $2.5 billion
Description: Funding for design, licensing, construction, and operation of two advanced reactor technologies, the TerraPower Natrium and the X-energy Xe-100 reactors. This funding builds on the initial $160 million from DOE’s Office of Nuclear Energy, awarded in 2020.
Eligible Applicants: TerraPower, LLC and X-energy
Enhanced Geothermal Systems and Pilot Demonstrations
Authorization: IIJA
Agency: DOE
Office: GTO
Funding Amount: $74 million
Description: Funding to demonstrate EGS in a variety of geographic locations, geologic formations, and subsurface conditions under four topic areas: EGS Proximal, EGS Green Field, Super-Hot/Supercritical EGS, and Eastern-U.S. EGS.
Eligible Applicants: Industry, National Labs, Institutes of Higher Education, Multi-institutional Collaborations Indian Tribes and Local Communities
Sector 3: Rural Electrification
Funding Programs:
Rural Energy for America Program (REAP) Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants
Authorization: IRA
Agency: USDA
Office: RD
Funding Amount: $2.025 billion
Description: Guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers can also apply for new energy-efficient equipment and new system loans for agricultural production and processing.
Eligible Applicants: Agricultural producers with at least 50 percent of their gross income coming from agricultural operations
Small businesses in eligible rural areas
Empowering Rural America (New ERA) Program
Authorization: IRA
Agency: USDA
Office: RUS
Funding Amount: $9.7 billion
Description: Energy efficiency improvements to eligible generation and transmission systems, to purchase, build, or deploy renewable energy, zero-emission systems,
carbon capture storage systems, or to purchase renewable energy.
Eligible Applicants: Rural electric cooperatives, including: Existing or former USDA Rural Utilities Service (RUS) borrowers; Borrowers of the former Rural Electrification Administration; Rural electric cooperatives that serve predominantly rural areas; Wholly or jointly owned subsidiaries of rural electric cooperatives
Powering Affordable Clean Energy (PACE) Program
Authorization: IRA
Agency: USDA
Office: RUS
Funding Amount: $1 billion
Description: Up to 60% loan forgiveness for renewable energy projects that use wind, solar, hydropower, geothermal, or biomass, as well as for renewable energy storage projects.
Eligible Applicants: Corporations, states, and territories, along with their subdivisions and agencies; Municipalities; Utility districts; Cooperatives; Nonprofits; Indian Tribes; Alaska Native, regional, or village corporation; Limited Liability Companies or other for-profit entities organized under the laws of any U.S. state or territory
Energy Improvements in Rural or Remote Areas (ERA) program
Authorization: IIJA
Agency: DOE
Office: OCED
Funding Amount: $1 billion
Description: Funding to modernize electric generation facilities, address disproportionately high electricity costs, and support new economic opportunities in rural and remote communities.
Eligible Applicants: Industry Partners and other For-profit Entities; Utilities; Institutions of Higher Education; State and Local Governments; Community Based Organizations and other Non-profit Entities; Tribal; Environmental Groups; and Cities, Towns, or Unincorporated Areas with populations of fewer than 10,000 inhabitants
