Energy Department plans up to $50 million in defense funding for proposed Virginia grid project
The department intends to use Defense Production Act money for a proposed project it estimates would add 290 megawatts of capacity on existing lines in Appalachian Power's Virginia system.
AI illustrationThe U.S. Department of Energy said it intends to use Defense Production Act funding to speed up the growth of transmission capacity in Virginia and West Virginia. A proposed project run by Virginia Energy will receive up to $50 million under the plan.
The proposed project, called Grid Enhancing Technologies for Virginia & West Virginia Large Load Growth, is meant to install advanced technologies on power lines that already exist. According to the department, the aim is to raise how much electricity the lines can carry, ease congestion and support rising energy demand in the region.
The proposed work would use advanced reconductoring and Dynamic Line Rating along existing transmission corridors. The department estimates that it would add 290 megawatts of transmission capacity across Appalachian Power's Virginia system, one to four years faster than conventional upgrades. It said the changes would make the grid more reliable, lower electricity costs and help keep power dependable for communities, businesses, military operations and defense-related industries, especially at times of high demand or disruption.
Virginia Energy is leading the proposed 48-month project in coordination with Appalachian Power, Potomac Edison and regional partners. The department said the project will show how advanced conductors and real-time monitoring of transmission lines can expand capacity using infrastructure already in place.
The funding comes from $1 billion in federal money that the department said has been appropriated for energy-related projects deemed critical to national security, following passage of the Working Families Tax Cut. Presidential Determination No. 2026-10 lists transmission lines and conductors, substations, and power-control and protection equipment as essential to national defense.
U.S. Secretary of Energy Chris Wright said the use of the funding in the two states would strengthen the nation's energy security for decades. Katie Jereza, assistant secretary for the Office of Electricity, said a stronger grid can sometimes come from making better use of existing lines rather than building new ones, and that the investment would help unlock more power and improve reliability.