U.S. Energy Department Approves Historic $26.5 Billion Loan for Georgia and Alabama Grid Upgrades
Thousands of megawatts of new battery energy storage systems (BESS) are being constructed across Georgia and Alabama. Because battery storage can provide stored energy to the grid for hours on demand, BESS resources enhance the overall reliability of the electric system.
The U.S. Department of Energy has approved what it calls its largest loan package in history, awarding $26.5 billion in financing for subsidiaries of Southern Co. This initiative is projected to deliver more than $7 billion in electricity cost savings for customers across Georgia and Alabama.
Energy Secretary Chris Wright announced the package on Tuesday, noting that the loans were issued through the department’s Office of Energy Dominance Financing as part of President Donald Trump’s executive order “Unleashing American Energy.” The order aims to expand 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 stated.
He emphasized that the loans will add more reliable power generation to the electrical grid while creating thousands of jobs.
The financing supports projects by Georgia Power and Alabama Power, including over 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 more than 1,300 miles of transmission and grid enhancements.
According to the Energy Department, 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. confirmed that the loans are expected to generate approximately $7 billion in savings over a 30-year period for its combined 4.3 million customers in Alabama and Georgia.
“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 added that Southern remains focused on maintaining rate stability while delivering long-term savings.
The company stated that the investments will serve its growing customer base and support significant projected growth in its service area.
