U.S. Department of Energy Unveils Largest Loan Ever: $26.5 Billion for Grid Upgrades in Two States

The U.S. Department of Energy has approved its largest loan package in history, awarding $26.5 billion in financing to Southern Co. subsidiaries with the projected delivery of over $7 billion in electricity cost savings for customers in Georgia and Alabama.

Energy Secretary Chris Wright announced the initiative on Tuesday, stating that the loans were issued through the department’s Office of Energy Dominance Financing under President Donald Trump’s executive order “Unleashing American Energy,” which focuses on expanding reliable and affordable domestic power generation.

“Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring Americans have access to affordable, reliable, and secure energy for decades to come,” Wright said.

He added that the loans are intended to “add more reliable power generation to our electrical grid” while creating thousands of jobs.

The funding will support projects by Georgia Power and Alabama Power, including more than 16 gigawatts of firm power capacity. The portfolio encompasses 5 gigawatts of new natural gas generation, 6 gigawatts in nuclear uprates and license renewals, hydropower modernization, battery storage systems, and over 1,300 miles of transmission and grid enhancements.

The department estimates that once fully drawn by September 2033, the loans could reduce Southern Co.’s interest expenses by more than $300 million annually—potentially lowering electricity costs for customers.

Southern Co. verified that the loans are expected to generate approximately $7 billion in savings for its combined 4.3 million customers across Alabama and Georgia over a 30-year period.

“These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers,” said Chris Womack, the company’s chairman, president, and CEO. He emphasized the company’s focus on maintaining rate stability while delivering long-term savings.

The company noted that these investments will serve its growing customer base and support significant projected growth in both states.