US closes $5.1 billion loan to Alliant Energy for new gas power generation, energy storage

The US Department of Energy has finalized a $5.1 billion loan package for Alliant Energy, a company planning to expand power generation and improve grid infrastructure in Iowa and Wisconsin. The funds, provided through the Department's Loans Office, will facilitate the construction of new natural gas-fired power plants, installation of energy storage systems, and enhancements to existing generation facilities.

These investments are projected to generate over 2.6 gigawatts of new or upgraded power generation capacity, enough to supply nearly 1.8 million homes. Initially proposed by the Biden administration in January 2025 as a conditional loan of $3 billion, the loan has since been expanded. The Loan Programs Office, overseen by Energy Secretary Chris Wright, has amassed hundreds of billions of dollars in financing tools, primarily allocated to support nuclear power projects.

However, the office's scope has broadened to include natural gas and energy storage projects, which were initially less common for such support. Energy storage, encompassing battery systems, was included in both the original and the completed loan. By facilitating the development of dependable power sources, the loan aims to bolster national energy security and potentially reduce electricity costs for households and businesses in the two states.

The director of the loan office, Gregory Beard, emphasized the loan's role in strengthening the nation's energy security, although the long-term impact on electricity costs is expected to unfold over several decades.