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Commerce Awards $4.9 Million to Strengthen Local Electric Grid Resilience Across the State
12/8/2025 9:00:00 AM
SAINT PAUL, MN: The Minnesota Department of Commerce today announced $4.9 million in grant awards to improve the resilience of Minnesota’s electric grid against severe weather events, malicious physical attacks, and cyber threats. The State Grid Resilience Grant Program is fully state-funded and administered by Commerce. It is part of a suite of 2023 legislative session initiatives to enhance the reliability, safety, and modernization of Minnesota’s energy infrastructure.
The grants, established through 2023 Chapter 60, Article 12, Section 72 of state legislation, provide up to $250,000 per project to municipal and cooperative electric utilities to strengthen their local distribution systems, increase capacity and reduce power outages.
In total, 28 applicants were selected to receive funding, including 13 municipal utilities, 13 electric cooperatives, the Minnesota Municipal Utilities Association (MMUA) and Minnesota Rural Electric Association (MREA). As of this release, all 28 awardees have projects moving forward across Minnesota.
“This program demonstrates how state-led investments can make a real difference for communities,” said Commerce Commissioner Arnold. “By upgrading local power systems - often by undergrounding lines in areas vulnerable to storms - we’re helping ensure Minnesotans have reliable, resilient electricity for years to come.”
Many funded projects focus on undergrounding power lines in areas prone to storm damage, replacing aging infrastructure, increasing power capacity for development and improving local grid operations. One grantee, Clearwater-Polk Electric Co-op, for example, was able to move immediately from storm recovery into a permanent undergrounding project after Commerce expedited its contract, avoiding the need for temporary power poles to restore power.
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