On October 28, 2026, the U.S. Department of Energy finalized a $5.1 billion loan package to Alliant Energy to expand power generation and strengthen grid reliability in Iowa and Wisconsin. The 30-year financing expands an earlier $3 billion Biden administration offer, shifting scope to fund 1.6 gigawatts of new natural gas power alongside 1 gigawatt of battery storage and 2 billion cubic feet of LNG storage. Alliant Energy projects customer savings of up to $1.2 billion and the creation of 1,600 local construction jobs.
Loan package announcement and history
- ▪The U.S. Department of Energy closed a $5.1 billion loan package to Midwestern utility Alliant Energy to expand power generation and strengthen grid reliability
- ▪The $5.1 billion Department of Energy loan package expands a $3 billion conditional commitment initially offered to Alliant Energy by the Biden administration in January 2025.
Financed generation and storage projects
- ▪The $5.1 billion loan package will finance 1.6 gigawatts of new natural gas generation and 240 megawatts of increased capacity at Alliant Energy's existing natural gas facilities.
- ▪The U.S. Department of Energy loan package includes financing for 1 gigawatt of battery energy storage capacity for Alliant Energy.
- ▪Alliant Energy's facility upgrades financed by the U.S. Department of Energy will deliver over 2.6 gigawatts of total new or upgraded power generation capacity, enough to power nearly 1.8 million homes.
- ▪The U.S. Department of Energy financing agreement allows Alliant Energy to add 2 billion cubic feet of liquefied natural gas storage capacity.
Expected customer savings and job creation
- ▪Alliant Energy projects that the $5.1 billion loan package will generate up to $1.2 billion in cumulative power bill savings for customers over the lifetime of the loans.
- ▪Alliant Energy estimates that construction projects financed by the U.S. Department of Energy loan package will create more than 1,600 local jobs.
Financial terms and borrowing structure
- ▪Alliant Energy's 30-year term loan facilities from the Federal Financing Bank mature in 2056 and carry interest tied to U.S. Treasury rates plus 37.5 basis points.
- ▪Under the loan terms, Alliant Energy subsidiaries Wisconsin Power and Light and Interstate Power and Light may borrow up to $1.63 billion and $3.5 billion respectively through 2033 to reimburse up to 80% of eligible project costs.
Changes to the Department of Energy loan program
- ▪The Trump administration renamed the U.S. Department of Energy's Loan Programs Office to the Office of Energy Dominance Financing and broadened its mandate to include conventional natural gas power projects.
- ▪As of September 30, 2026, the U.S. Department of Energy had issued $132 billion in loans and guarantees through its Energy Dominance Financing Program, including $53.2 billion in disbursed funds.
Story comments
Loading comments…