The U.S. Department of Energy announced a new funding opportunity of up to $237 million to strengthen domestic supply chains for critical electrical equipment that keeps America’s grid reliable, safe and secure. The Grid Supply Chain Alternatives to Lead Energy Dominance (SCALED) funding opportunity will support greater use of domestically sourced grid materials and components.  

“America’s growing need for electricity demands a stronger grid and the manufacturing capabilities to support it,” said NEMA President and CEO Debra Phillips. “With U.S. electricity demand projected to grow as much as 55% by 2050, domestic electrical manufacturers have invested over $200 billion in their U.S. manufacturing operations since 2018, creating products necessary to building the grid of the future. America’s ability to manufacture critical electrical grid components is both an economic and a national security imperative. We applaud the Department of Energy’s commitment to strengthening domestic supply chains and ensuring American manufacturers can deliver the groundbreaking technologies needed to power our economy.”  

“Reliable, affordable electricity depends on a strong U.S. electrical manufacturing industry,” Phillips added. “NEMA’s Make It American^® program recognizes the manufacturers investing in U.S. facilities, expanding production capacity, and creating American jobs. Every new production line strengthens the supply chains our grid depends on and reduces our exposure to cyber risks and bottlenecks. We look forward to working with DOE both to elevate Make It American and the manufacturers leading this effort, and to expand domestic production of critical grid equipment through the SCALED program.” 

The U.S. electroindustry has also committed more than $20 billion toward new and expanded production capacity since January 2025, with the majority of the nearly 80 investments announced over the past 21 months supporting transformer and switchgear production. 

Funded through congressional appropriations earlier this year, DOE’s Grid SCALED funding opportunity will support two priorities:  

-Up to $187 million for projects that increase the use of domestically sourced alternative materials and subcomponents, reducing reliance on imports. 

-Up to $50 million toward projects that promote refurbishment and reuse of existing grid equipment and materials. 

Together, these efforts are designed to strengthen grid supply chain resilience, reduce equipment constraints, and help accelerate the delivery of critical electrical infrastructure. 

DOE estimates the initiative could generate up to $175 million in annual economic value, including $125 million in utility savings and $50 million in economic activity retained in America rather than flowing to foreign suppliers. 

About NEMA

The National Electrical Manufacturers Association (NEMA) represents over 300 electrical equipment manufacturers that make safe, reliable, and efficient products and technologies that power, connect, and light our world. Together, our members contribute a full 1% of U.S. GDP and directly provide over 590,000 American jobs, adding more than $375 billion to the U.S. economy. Learn more at makeitelectric.org