TVA Secures Federal Funding to Boost Power Grid Resilience and Expand Capacity

Oct 15, 2026 at 12:43 pm


KNOXVILLE, Tenn. (WGNS) - The U.S. Department of Energy (DOE) is partnering with the Tennessee Valley Authority (TVA) to deliver nearly $741 million in total planned grid investments to strengthen regional power reliability and lower electricity costs for Rutherford County residents and surrounding communities.

U.S. Department of Energy Deputy Secretary James Danly visited TVA headquarters on Tuesday (October 13th) to announce the federal backing, which includes $250 million in federal funding alongside $331 million in applicant cost-share funding for the Grid Resilience and Innovation Partnerships (GRIP) project.

"Since day one, President Trump has recognized that years of misguided energy policies under the previous administration left our bulk power system less robust than it should be," said Deputy Secretary Danly. "America is blessed with an abundance of natural resources and some of the most advanced technology in the world, but we must have the generation and transmission infrastructure necessary to support our rapidly growing economy and its electricity needs. These investments with TVA will help reduce congestion, improve efficiency, and make better use of our existing transmission system to lower costs for ratepayers while delivering affordable, reliable, and secure energy essential to American prosperity."

The GRIP project funding will support transmission and distribution upgrades across the region, adding approximately 2.5 gigawatts of grid capacity. The expanded infrastructure aims to prevent power outages, increase energy security, and support about 800 jobs while serving roughly 2.58 million families and businesses.

TVA Interim President and CEO Mike Skaggs emphasized that improving the backbone of the region's power system directly helps maintain reliability and keeps electric bills low for local consumers...

TVA and nine local power companies will execute the transmission and distribution projects across the service territory.

"America's electric grid cannot become a roadblock to economic growth," said Office of Electricity Assistant Secretary Katie Jereza. "By bringing TVA and local utilities together, we're helping reduce costly outages and deliver more power where it's needed. That means fewer disruptions for families, more opportunities for businesses, and a stronger foundation for American jobs."

U.S. Congressman Chuck Fleischmann (R-Ooltewah) also joined energy leaders at the announcement, noting that investing in regional energy infrastructure builds a stronger foundation for the area's economic future.

The new GRIP award builds on DOE's prior selection of TVA for the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program. Together, the two initiatives represent nearly $741 million in planned grid investments, including $329.8 million in total federal support, and will add more than 4,300 megawatts of additional grid capacity.

Under the SPARK program, TVA will upgrade approximately 125 miles of existing transmission lines across Tennessee, Alabama, and North Carolina using advanced conductors and modern grid-management technology. The $159.7 million SPARK project alone is expected to reduce congestion and add 1,900 megawatts of capacity.

Final federal funding, project scope, schedules, and award conditions remain subject to finalized DOE agreements alongside required environmental, permitting, regulatory, and Tribal reviews.

 

 

Tags: Chuck Fleischmann Department of Energy DOE electricity costs grid resilience James Danly Mike Skaggs power grid Rutherford County energy Tennessee power grid Tennessee Valley Authority transmission projects TVA
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