Energy
DOE Issues Record $26.5 Billion Loan to Southern Company for Massive Grid Expansion
The Department of Energy has issued the largest loan in its history — $26.5 billion — to Southern Company for 5 GW of new natural gas capacity and other grid investments. The agency says the deal will deliver over $7 billion in cost savings for Georgia Power and Alabama Power customers.
Key Takeaways
- DOE issued record $26.5 billion loan to Southern Company for grid expansion
- Funding covers 5 GW of new natural gas generation plus transmission and grid upgrades
- Agency projects over $7 billion in cost savings for Georgia and Alabama Power customers
- Data center demand from AI boom is driving unprecedented electricity load growth
- Deal signals federal willingness to finance gas infrastructure as a bridge technology
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