The U.S. Department of Energy Office of Clean Energy Demonstrations (OCED) intends to issue a funding opportunity for up to $50 million for distributed energy systems demonstrations. This anticipated funding opportunity seeks to prioritize transformative at-scale projects within medium and large distribution systems that demonstrate reliable grid operations using higher contributions from distributed energy resources than previously validated. The goal is to support demonstrations that de-risk technologies needed to manage variable generation, control flexible loads, and integrate energy storage, electric vehicle (EV) charging, and other facilities into the U.S. transmission and distribution grids.

The anticipated funding opportunity supports the Biden-Harris Administration’s decarbonization goals of a 50%-52% reduction in greenhouse gas (GHG) emissions from 2005 levels by 2030, a carbon-pollution-free power sector by 2035, and a net-zero GHG emissions economy by 2050. It will allow the U.S. to develop more reliable, resilient, and cost-effective distribution grids and distributed energy systems while supporting climate action and providing benefits to communities and workers.

OCED intends to award two to four projects, with each receiving between approximately $10-$25 million, with a 50% minimum required non-federal cost share. DOE intends to award projects that will demonstrate reliable operations and system-wide value in the context of distribution grids with high levels of variable renewable generation and flexible load assets and will facilitate partnerships between grid system operators and service provision to ensure replicability and extensibility of control approaches.

To receive updates on the anticipated funding opportunity announcement, register in OCED eXCHANGE

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