US Provides $5.1 Billion Loan to Alliant Energy for Gas and Energy Storage Projects

en.Wedoany.com Reported - On October 28, the U.S. Department of Energy closed a $5.1 billion loan financing to Alliant Energy to support the construction of natural gas power plants, battery energy storage facilities, and upgrades to existing plants in Iowa and Wisconsin. The loan has a 30-year term and involves more than 2,600 MW of new or upgraded power supply capacity, including approximately 1,500 MW of new natural gas generation capacity and approximately 1,000 MW of battery energy storage systems.

The loan was provided by the U.S. Department of Energy's Office of Energy Financing, with financing extended to two electric utility subsidiaries of Alliant Energy: Interstate Power & Light Company and Wisconsin Power & Light Company. The funding also covers approximately 240 MW of capacity upgrades at existing generating units and approximately 2 billion cubic feet of liquefied natural gas storage facilities. The natural gas generation, battery energy storage, and fuel storage facilities will be incorporated into the power infrastructure construction plans of the two states respectively.

In Wisconsin, the related financing arrangement involves a $1.6 billion loan. Alliant Energy told local media that potential construction projects include a natural gas storage facility in Rock County and two battery energy storage facilities in southwestern Wisconsin and near Sheboygan. These projects still involve approval procedures before the state Public Service Commission, and the final loan-supported project portfolio will be determined based on subsequent approvals and implementation conditions.

According to U.S. Department of Energy project documents, the construction plans are expected to support approximately 1,630 construction jobs and 46 permanent jobs. Alliant Energy estimates that the favorable loan interest rate can save approximately $1.2 billion in customer electricity costs over the 30-year term. Subject to project implementation, eligibility, and financing conditions, the loan can reduce interest expenses by more than $46 million per year. The above amounts are expected savings calculated by the company and government, not realized benefits.

The $5.1 billion financing was formed through adjustments to a previous loan arrangement. In January 2025, the U.S. Department of Energy issued a $3 billion conditional loan commitment to Alliant Energy, primarily to support clean energy and battery energy storage projects. The formal financing closure completed in October 2026 incorporates natural gas generation, liquefied natural gas storage, and upgrades to existing units into the scope of support, and increases the total loan amount to $5.1 billion.