DOE allocates up to $50 million DPA funding for Virginia-West Virginia transmission project
Virginia Energy's grid-enhancing project in Virginia and West Virginia receives up to $50 million in Defense Production Act funds, effective immediately.
The U.S. Department of Energy announced its intent to deploy Defense Production Act funding to accelerate transmission capacity expansion in Virginia and West Virginia. Virginia Energy's Grid Enhancing Technologies for Virginia & West Virginia Large Load Growth project will receive up to $50 million in DPA funding.
The project will deploy advanced reconductoring and Dynamic Line Rating technologies along existing corridors, adding an estimated 290 megawatts of transmission capacity across Appalachian Power's Virginia system, one to four years faster than conventional upgrades. The proposed 48-month effort is designed to demonstrate how advanced conductors and real-time monitoring can expand capacity using existing infrastructure.
Funding follows the appropriation of $1 billion for energy-related projects deemed critical to national security, a result of the Working Families Tax Cut. Presidential Determination No. 2026-10 identifies transmission lines and conductors, substations, and power-control and protection equipment as essential to national defense.
"President Trump is committed to doing everything possible to strengthen American energy security and lower costs for the American people," said U.S. Secretary of Energy Chris Wright. "By deploying Defense Production Act funding to secure and expand electricity access in Virginia and West Virginia, the Trump Administration is strengthening the nation's energy security for decades to come."
"A stronger electric grid doesn't always mean building more power lines. Sometimes it means making better use of the ones we already have," said Office of Electricity Assistant Secretary Katie Jereza. "This investment will help unlock more power, strengthen reliability, and ensure our grid can meet the growing demands of American families, businesses, and national defense." Led by Virginia Energy in coordination with Appalachian Power, Potomac Edison and regional partners, the effort targets reliability for communities, businesses, military operations and defense-related industries.
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