This month, the Department of Energy (DOE) launched its Supply Chain Alternatives to Lead Energy Dominance (SCALED) initiative, which will use $237 million in fiscal year 2027 funding. The goal of the initiative is to strengthen the United States’ domestic grid manufacturing.

The DOE is doing this by diverting funds into two topic areas. About $50 million in funding will go towards “refurbishment and reuse of critical grid equipment” and the remaining $187 million in funding will be put towards “alternative materials and subcomponents.”

The goal of refurbishing and reusing critical grid equipment is to lessen supply chain constraints by finding ways to reclaim and reuse materials from equipment that is either retired, has significant storm damage or is otherwise no longer being used. The goal of putting funding towards alternative materials and subcomponents is to make the supply chain for the U.S. energy grid more resilient by supporting U.S. manufacturers in their adoption of domestically sourced alternative materials. 

The initiative as a whole supports the DOE Office of Electricity’s broader $375 million program to strengthen the United States’ domestic supply chain for electric grid components. By using U.S.-sourced materials and reusing critical grid equipment, the DOE intends for the country to become less reliant on foreign energy suppliers. The initiative and broader program hopes to keep money within the American economy and lower electricity costs. 

Applicants who want to apply for funding must submit a concept paper by November 20, 2026, and complete a full application by February 8, 2027. Applicants must also commit to cost sharing a minimum of 50% of the total project costs that they use funding for. For refurbishment and reuse of critical grid equipment, projects that are selected will be funded between $2.5 million and $15 million, while projects selected for alternative materials and subcomponents funding will be funded between $1 million and $25 million per project.