Updates from DOE
DOE’s SPARK Funding Opportunity to Invest Up to $1.9 Billion in Power System Infrastructure Improvements
By Kevin Lynn, EERE alum; Isabel Sepulveda, GDO alum; Janie Thompson, CI alum; and Paul Donohoo-Vallett, OP alum
March 25, 2026
The U.S. Department of Energy (DOE) recently announced the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) program. It is the evolution of the Grid Resilience and Innovation Partnerships (GRIP) program with a new name and focus.
The SPARK solicitation proposes up to $1.9 billion for projects that advance the performance and reliability of the electric grid with a focus on replacing transmission lines with advanced conductors, use of advanced transmission technologies that increase the usable capacity of existing infrastructure, and increasing interregional transmission. The Infrastructure Investment and Jobs Act (IIJA) provided DOE with billions of dollars in 2021 to make the most significant direct federal investment in the electric grid in generations — modernizing aging infrastructure, hardening the system against natural disasters and wildfires, and expanding transmission capacity to support a rapidly evolving energy landscape.
The SPARK program could be a great opportunity to address grid constraints, rising electricity prices, and meet growing electricity demand from data center expansion and electrification. Maximizing the use of the existing grid infrastructure can unlock more capacity and help address drivers of electricity price increases.
However, there is some uncertainty and potential challenges with implementation. First, the solicitation appears to be at odds with statutory intent in several places. For example, it rejects applications that prioritize connection to intermittent resources even though IIJA explicitly includes the integration of intermittent resources as part of the definition of smart grid functions. Second, in October 2025, DOE sent cancellation notices to prior GRIP awardees, totaling over $2 billion–which could have a chilling effect and reduce the application pool. Finally, a different office within the Department is managing this solicitation than managed GRIP, following a reorganization and significant staff departures. With an aggressive proposed application review schedule, it is unclear whether or how this will affect the selection process.
SPARK Funding Uses Remaining IIJA Appropriations and Does Not Rely on Canceled Projects
SPARK is drawing on appropriations originally provided to DOE by the IIJA, which included $10.5 billion to enhance grid flexibility and improve the resilience of the power system against extreme weather under three authorizations:
§40101, Preventing Outages and Enhancing the Resilience of the Electric Grid;
§40107, Deployment of Technologies to Enhance Grid Flexibility, aka Smart Grid Investment Grants; and
§40103(b), Program Upgrading Our Electric Grid and Ensuring Reliability and Resilience
In 2022, DOE launched the Grid Resilience and Innovative Partnerships (GRIP) program, to implement these authorities. DOE announced $3.5 billion of award selections in October 2023 under GRIP round 1 and an additional $4.2 billion of award selections in October 2024 under GRIP round 2.
SPARK retains the §40101, §40107, and §40103(b) programs under three topic areas, and the graphic below shows the total appropriations, the portion of funding already committed under the prior GRIP round 1 and round 2 awards, and the balances used for the SPARK NOFO.
The remaining balances imply that there is sufficient appropriations from IIJA within each of the three programs to cover the total $1.9 billion available under SPARK, without relying on any deobligated funds from canceled projects. Even after SPARK, there should be over $900 million in total remaining appropriations across these three programs
SPARK Targets Projects that Expand Transfer Capacity at the Distribution and Transmission Levels through Advanced Technologies
The SPARK solicitation has three topic areas corresponding to the three statutory sections described above:
Topic Area 1 - Grid Resilience: focuses on projects that improve grid reliability and resilience by replacing existing conductors with high-capacity alternatives and deploying other advanced transmission technologies (ATTs) like dynamic line rating, flexible transformers, and power flow control.
Topic Area 2 - Smart Grid: funds smart grid projects that combine ATTs with digitalization, automation, and data-driven controls to boost grid reliability, flexibility, and affordability. Technical approaches include dynamic line rating, topology optimization, Flexible AC Transmission Systems (FACTS) devices, and digital substation automation, all tied together with robust communications infrastructure and cybersecurity measures consistent with DOE, National Institute of Standards and Technology (NIST), and North American Electric Reliability Corporation (NERC) standards.
Topic Area 3 - Grid Innovation: targets large-scale, multi-jurisdictional transmission projects that expand transfer capability across regional boundaries to support significant new load growth.
The NOFO outlines that applications for all three topic areas must demonstrate “a quantifiable increase in transfer capability attributable to the proposed project.” Projects funded under these three topic areas should also “help lower electricity costs by expanding transfer capability, relieving congestion, and improving the efficiency and reliability of the grid.”
ATTs such as advanced conductors are explicitly called out as part of “Pathways to Commercial Liftoff: Innovative Grid Deployment,” published by DOE 2024. As outlined in the Grid Liftoff Report, grid modernization projects could help:
Build widespread understanding and confidence in these advanced technologies as viable alternatives to conventional solutions
Grid operators understand how to procure, install, and operate these innovative solutions
Grid planners understand how to include these technologies in system planning and prioritize these solutions for investment
Grid operators understand how these technologies can generate sufficient financial returns to warrant investment.
The Gap Between Statutory Purpose and Programmatic Design
A close comparison of the type of projects SPARK and prior GRIP rounds would prioritize reveals a shift in focus that may be counter to Congressional intent and lead to increased applicant uncertainty.
First, the SPARK solicitation explicitly states that projects that prioritize wind or solar generation are not of interest across all three topic areas. Specifically, “projects that prioritize connection to intermittent generation sources that are not in line with the Administration’s goals of energy dominance” fall under the category: “Applications Specifically Not of Interest.” This restriction is unusual for a DOE NOFO and is directly counter to congressional intent for the smart grid program (IIJA section 40107, Topic Area 2). Congress explicitly identified smart grid projects of interest to include technologies that support integration of renewable and intermittent generating resources. Specifically technologies that can provide:
“The ability to facilitate the aggregation or integration of distributed energy resources to serve as assets for the grid” 42 U.S. Code 17386(d)(10).
“The ability to provide energy storage to meet fluctuating electricity demand, provide voltage support, and integrate intermittent generation sources…” 42 U.S. Code 17386(d)(11).
“The ability to facilitate the integration of renewable energy resources…” 42 U.S. Code 17386(d)(14).
More broadly, the restriction on applications that “prioritize connection to intermittent generation sources” is not well-defined and may cause confusion as to how strictly it will be applied. For context, wind and solar provided 19% of total U.S. electricity generation in the first 11 months of 2025. According to the EIA, new U.S. electric generating capacity is expected to reach a record high in 2026, and more than half (43 GW) of it will come from solar technologies. Projects that increase the capacity of existing transmission are likely to have some impact on supporting additional wind and solar generation simply based on how much is in development. But it is not clear if incidentally enabling such generation would be considered “prioritizing” connections to such projects. Without clear guidance, otherwise eligible and beneficial projects may be discouraged from applying.
The second area with a possible gap between statutory intent and program design is Topic Area 1 on Grid Resilience. DOE appears to prioritize increased grid capacity over the statutory requirement to prioritize projects that maximize resilience benefits to communities. The underlying statute for section 40101(c) in IIJA generally directs DOE to make grants to “increase the ability of [awardees] to reduce the likelihood and consequence of disruptive events” such as blackouts or proactive power shutoffs due to wildfire, extreme weather, and other natural disasters. It further requires DOE to prioritize projects that will have the most “community benefit” in reducing these risks and impacts.
However, the SPARK solicitation on page 20 requires projects to demonstrate an increase in transfer capacity and demonstrate benefits in one of three categories: supporting load growth and interconnection costs; alleviating congestion and reducing customer costs; or increasing reliability or resource adequacy. While these requirements and benefits are admirable, none of them require prioritizing for resilience benefits that flow to communities, per the statute.
History of Project Cancellations Increases Risk and May Deter Applicants
On October 1, 2025, DOE sent cancellation notices to a significant number of the awards announced under GRIP: $32.81 million under Section 40101(c), $692.13 million under Section 40107, and $1.45 billion under Section 40103(b). None of these awards have been de-obligated as of March 2026, and as such, those funds remain encumbered and are not available to be recompeted. The amount of funding allocated for the third solicitation suggests that DOE is not anticipating any of those funds to become available to support the SPARK opportunity.
In addition, having so many awards canceled from earlier GRIP rounds may discourage applicants from applying. Developing applications for solicitations like these requires enormous effort and coordination on behalf of the applicant, and typically only a portion of applicants are awarded funding. Those that were selected faced a months-long complex negotiation process, many of which were unable to complete before their project funding was pulled. The possibility of a cancellation mid-stream only increases risk to the applicant. For example, if it is determined after an award that the project enabled deployment of intermittent generation, would it be at risk of cancellation?
DOE Staffing Reductions and Reorganizations May Affect SPARK Implementation
Over the last year, DOE lost a majority of its staff in the Grid Deployment Office (GDO), which previously managed the first two rounds of GRIP awards. DOE’s recent reorganization eliminated GDO and responsibility for managing SPARK shifted to the Office of Electricity (OE). While OE is more than qualified to take on this effort, it is unclear how the combination of change in leadership and staff departures will affect implementation and review of the SPARK program.
For example, the SPARK program has a significantly accelerated timeline compared to prior GRIP rounds. For GRIP round 2 issued in late 2023, concept papers were due in approximately nine weeks, and full proposals were due in approximately five months. For SPARK, concept papers are due three weeks from when the NOFO was issued, and full proposals are due in just over two months. That is a significantly shorter timeframe for both applicants to develop proposals and for a reduced DOE staff to perform merit review, particularly for awards that can reach up to $250 million. Based on extremely high levels of interest and application volume for prior GRIP rounds (GRIP round 2 had 325 applications requesting over $30 billion in funding, more than 7 times the funding available) there could be similar overwhelming interest in SPARK.
Despite Challenges, SPARK Could Be a Great Opportunity to Rapidly Address Grid Constraints at Lower Cost
With increasing load from data centers and electrification, combined with factors increasing electricity prices, SPARK provides an opportunity to maximize the use of existing infrastructure through advanced transmission technologies and smart grid devices. The IIJA provided billions of dollars to advance these solutions, but whether DOE can fully execute SPARK amid increased burdens on applicants and significant reductions in staff capacity, and therefore the program's ultimate impact, remains uncertain.
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This piece was drafted by trusted and vetted alumni of the U.S. Department of Energy. Any views and opinions expressed are that of the author(s) and do not reflect those of the DOE Alumni Network.