The US Department of Energy stated that it has closed a $5.1 billion loan package to Alliant Energy. This loan will be used to expand power generation and upgrade the grid at plants in Iowa and Wisconsin.
Furthermore, the investments from the department’s loans office will support new natural gas-fired power plants. Also, it will support energy storage systems and upgrades to existing generation facilities.
Job Opportunities to be Generated by the Loans
The loans will create hundreds of construction-related jobs. Additionally, the loans will deliver more than 2.6 gigawatts of new or upgraded power generation capacity, it said. That is enough power for about 1.8 million homes.
Biden’s Administration Originally Proposed the Loan
The loan had originally been proposed by the administration of former President Joe Biden in his last days in office in January 2025. However, at this time, it was only a conditional loan of $3 billion.
The office of Energy Dominance Financing, called the Loan Programs Office under Biden, has hundreds of billions of dollars in financing available, the bulk of which Energy Secretary Chris Wright has said will be used support nuclear power projects.
More than the name of the office has changed. Its mission during the Biden administration was to provide support to emerging clean energy projects and alternative vehicles that struggled to get bank loans.
However, as for now it includes support to projects like natural gas that have typically been able to get bank loans. Energy storage, which typically includes batteries, was supported in both the initial and the closed loan.
“By bringing new, dependable power online, we are strengthening our nation’s energy security and lowering electricity costs for families and businesses across Iowa and Wisconsin,” the loan office director, Gregory Beard, said in a release.
Any lowering of electricity costs could take many years as the loans take place over decades.
US Government Puts Effort in Energy Infrastructure Development
Through the Department of Energy, the U.S. government plays a direct role in expanding the nation’s energy network by providing billions of dollars in low-cost loans. The federal government uses this financing to back critical power projects across the country.
For example, the DOE recently offered a conditional $5 billion loan commitment to Constellation Energy to modernize and boost the output of its nuclear plants in Illinois, Maryland, and Pennsylvania. Also, it has closed a $5.1 billion financing package for Alliant Energy to build natural gas plants and add battery storage in Iowa and Wisconsin. Similar loans have gone to companies like Vistra to expand nuclear output and to Southern Company to strengthen regional electric systems.
Through these major funding moves, the government works directly with energy providers to increase generating capacity, upgrade power grids, and improve long-term energy reliability for millions of homes.
Factsheet: Alliant Energy Grid & Generation Expansion
Borrower: Alliant Energy (LNT)
Financing Authority: U.S. Department of Energy – Office of Energy Dominance Financing (formerly Loan Programs Office)
Total Financing: $5.1 billion closed loan package (expanded from a conditional $3 billion offer in January 2025)
Location: Iowa and Wisconsin
Target Capacity: 2.6 gigawatts (GW) of new or upgraded power generation
Household Impact: Powers roughly 1.8 million homes
Core Project Scope
- Natural Gas Generation: Construction of new natural gas-fired plants and efficiency upgrades to existing power facilities.
- Energy Storage: Installation of battery storage systems to back up variable demand and improve overall grid stability.
- Grid Upgrades: Infrastructure enhancements designed to bolster power reliability across both states.
Key Benefits
- Job Creation: Adds hundreds of local construction and engineering jobs during development.
- Energy Reliability: Adds dispatchable baseload power to protect against outages and support growing electricity demands.
- Long-Term Cost Impact: Aims to lower consumer energy bills over time through lower long-term debt financing costs.
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