State & Local News
Pennsylvania Advances Electric Grid Modernization
March 20, 2026
Pennsylvania state agencies and legislators are actively advancing electric grid modernization initiatives to address rising energy costs and improve grid reliability amid increasing demand. The Pennsylvania House Energy Committee is considering legislation (H.B. 2223 and H.B. 2264) focused on deploying advanced transmission technologies (ATTs) and virtual power plants (VPPs) to enhance grid efficiency and reduce infrastructure costs. Concurrently, the Pennsylvania Department of Environmental Protection has allocated over $10 million through the 2026 Pennsylvania Grid Resilience Grants to six awardees across nine counties to implement smart grid technologies and infrastructure upgrades aimed at preventing outages and strengthening resilience against climate impacts and aging systems.
- These legislative and funding actions signal growing procurement opportunities for companies specializing in advanced grid technologies, smart infrastructure, and resilience solutions within Pennsylvania.
- Procurement professionals should note the focus on cost-saving measures such as deferring costly transmission rebuilds and leveraging existing resources through VPPs, which may influence contract requirements and evaluation criteria.
- The involvement of multiple rural electric cooperatives and municipalities as grant awardees highlights potential partnerships and subcontracting opportunities for vendors.
- Organizations engaged in grid modernization should align proposals with state priorities on affordability, reliability, and climate resilience to enhance competitiveness in upcoming solicitations.
Pennsylvania's electric grid continues to strain the pocketbooks of our neighbors and families as energy demand rises. More than ever, we need smarter solutions to keep power reliable and affordable. By modernizing how we manage energy, we can protect ratepayers, strengthen reliability, and ensure Pennsylvania’s grid is ready for the future.
— Nate Davidson, State Representative
PPL’s 2022 project resulted in a $65 million reduction in congestion costs, a 16% increase in capacity, and $50 million in savings by deferring a transmission line rebuild.
— Jenny Netherton, Energy Modernization Officer at Pew Charitable Trusts
H.B. 2264 would unlock the value of these existing resources—reducing costs for ratepayers while strengthening the reliability of the electric grid.
— Chris D’Agostino, Pennsylvania Policy Principal at Advanced Energy United
Agencies
Pennsylvania Department of Environmental Protection, Pennsylvania House Energy Committee, Department of Energy, Pennsylvania House of Representatives
Vendors
REA Energy Cooperative, Northwestern Rural Electric Cooperative, Borough of Duncannon, Borough of Schuylkill Haven, Claverack Rural Electric Cooperative
Contracts
$10,000,000
Locations
Sources
- Testifiers emphasize the role of grid modernization in curbing rising energy costs · PA · Mar 18
- Industry experts testify on the role of grid modernization in curbing rising energy costs - North Penn Now · North Penn Now · Mar 20
- $10 Million Earmarked to Strengthen Electric Grid and Prevent Power Outages - PennWatch · pennwatch.org · Mar 17