Energy Department Announces Virginia and West Virginia Transmission Project to Receive Defense Production Act Funding, Strengthening National Security and Grid Reliability

WASHINGTON—The U.S. Department of Energy (DOE) today announced its intent to deploy Defense Production Act (DPA) funding to accelerate the expansion of transmission capacity in Virginia and West Virginia, strengthening grid reliability and infrastructure essential to national defense. Virginia Energy's Grid Enhancing Technologies for Virginia & West Virginia Large Load Growth project will receive up to $50 million in DPA funding to deploy advanced transmission technologies across existing power lines to increase electricity delivery capacity, reduce congestion, and support growing energy demand across the region. 

The proposed project will deploy advanced reconductoring and Dynamic Line Rating technologies along existing transmission corridors, adding an estimated 290 megawatts of transmission capacity across Appalachian Power's Virginia system, one to four years faster than conventional transmission upgrades. These improvements will make the power grid more reliable, lower electricity costs, and help ensure that communities, businesses, military operations, and government and defense-related industries across the region have dependable power, especially during times of high demand or power disruptions.

Thanks to President Trump and the passage of the Working Families Tax Cut, $1 billion in federal funding has been appropriated for energy-related projects deemed critical to national security. 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 proposed 48-month project will demonstrate how advanced conductors and real-time transmission monitoring technologies can expand capacity using existing infrastructure. The project reflects the Trump Administration's focus on delivering critical energy infrastructure, strengthening domestic supply chains by creating infrastructure deployment of advance technologies and materials, and improving grid performance while protecting taxpayer dollars and ratepayers.