WASHINGTON—In support of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) today announced up to $50 million in funding for three clean energy projects that help the U.S. develop a more responsive, resilient, and economical electric grid. These projects span across Colorado, Massachusetts, and Virginia to support the demands of an increasingly electrified nation filled with electric vehicles (EVs), advanced industrial operations, smart technologies, and sizeable energy storage. These projects are part of OCED’s Distributed Energy Systems (DES) Demonstrations Program, which aims to support diverse, scalable, replicable clean energy projects needed to build safer, climate resilient communities, while helping the nation reach President Biden and Vice President Harris’ ambitious clean energy and climate goals.   

Electricity demand is expected to continue to increase through 2050, driven by electrification of sectors including building sector heating, cooling and cooking; EVs and associated charging infrastructure; industrial processes; and more. Meanwhile, distributed energy resources (DERs)—like solar panels, battery storage, EVs and charging infrastructure, and smart appliances—make up the majority of the new distributed capacity in generation, storage, and flexible demand. DERs are modular, electricity generation and energy storage technologies located near the point of use, reducing the need to pull from the larger power grid. By utilizing distributed energy resource management systems (DERMS), utilities can combine the established energy generation resources of participating consumers, then optimize and manage their use in real-time to support safe, reliable, and affordable grid operations. As more sectors turn to electrification to decarbonize, the ability to manage a more diverse set of grid assets will add much needed energy resilience in a time of increasing grid strain and disruptions due to severe weather events.  

All three selected projects are in or adjacent to disadvantaged communities and will include a variety of distributed energy resource and management systems aimed to improve reliability and resiliency in their project areas, demonstrating the potential for wider commercial adoption. The three projects selected for award negotiation include: 

• GRid and Integration Demonstration of FLEXible Energy Resources (GRID-FLEXER) (Suffolk, VA)—This DERMS project aims to coordinate the area’s current DERs—from solar panels and battery storage to electric vehicles and smart appliances—with control software. Leveraging these DERs, Dominion Energy Virginia would optimize and manage the 150MW of clean energy derived from these resources to provide grid support and increased capacity, particularly during high demand and peak load events, all without costly grid upgrades. By successfully demonstrating this approach, Dominion Energy Virginia hopes to pave the way for wider implementation across its service territory, ensuring consistent power delivery and cost-effective clean energy integration, and ultimately provide a replicable model for future implementation across utility providers and diverse service territories. 

• Outer Cape Microgrid Optimization (Orleans, MA to Provincetown, MA)—This project aims to implement a DERMS to improve regional energy reliability and resiliency in the Cape Cod, MA area. Once integrated into the grid, this DERMS project would coordinate customer-owned DERs—like solar panels, smart thermostats, or batteries—with an existing 24.9 MW battery energy storage system owned by Eversource. These efforts would enhance the existing regional microgrid with a DERMS that is capable of dispatching clean energy to extend the length of time it can provide reliable power to customers while crews work to make repairs. 

• Prime Time Virtual Power Plant (Boulder, CO)—This project plans to develop and deploy a virtual power plant that aggregates the DERs of participating customers to balance, optimize, and shift electrical loads, minimizing grid upgrades and costs for customers and maximize renewable energy delivery. The implementation of the proposed virtual power plant offers a scalable solution, providing operational flexibility to enable the power system to respond efficiently to changes in supply and demand that could be replicated across Xcel Energy territories and the U.S. The project could help Boulder, CO reach its 100% renewable electricity goals by 2030 while optimizing distributed generation installation growth necessary to accommodate current forecasted peak load increases.     

Learn more about the projects selected for award negotiation here. 

As part of DOE’s commitment to advancing environmental and energy justice, each selected project is required to develop and ultimately implement a comprehensive Community Benefits Plan (CBP)—which will be informed by early and meaningful community engagements in each region. OCED is planning to hold a national briefing to provide information on the selected projects and OCED’s approach to clean energy demonstrations. Learn about DES engagement opportunities and register to attend here. 

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the selectees will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time.  

If awarded, OCED will evaluate these projects through a phased approach to project management that includes “go/no-go” decision points between each project phase where DOE reviews and evaluates implementation progress, including community benefits.