By: Joseph Phelan, Grants Development Consultant
The U.S. Department of Energy launched the Grid Deployment Office (GDO) in August 2022 to maintain and invest in critical generation facilities, grid resilience, and improving and expanding transmission and distribution systems to provide reliable and affordable electricity. GDO directly stems from the Biden Administration’s focus on reducing emissions by at least 50 percent below 2005 levels by 2030, reaching 100 percent clean electricity by 2035, and creating a zero-emissions economy by 2050. Under this office, there are three specific entities responsible for funding mechanisms designed to help the United States reach its goals. Generation facilities can take advantage of various credit programs to help strengthen electricity markets at the wholesale and distribution level; the Transmission Division coordinates necessary plans, financing, and facilitation to drive essential transmission investment; and lastly, there is the Grid Modernization Division.
The Grid Modernization mostly consists of two multi-billion-dollar programs that will help utility providers of all kinds prevent outages, enhance reliability, and further improve distribution systems throughout the country. The $2.3 million Grid Resilience State and Tribal Formula Grant will specifically strengthen and modernize the power grid against wildfire, extreme weather as well as other natural disasters exacerbated by the ongoing climate change crisis, while the $10.5 billion Grid Resilience Innovation Partnerships Program (GRIP) offer similar opportunities across three components: Grid Resilience Utility and Industry Grants; Smart Grid Grants; and the Grid Innovation Program. The first round of GRIP funds has been awarded, with another round having just been completed, but there will still be plenty of funds remaining for several entities to utilize.
States, territories, and tribes have received direct allocations under the Grid Resilience State and Tribal Formula Grant. In 2023, the first round of applications was due for funds allocated in 2022 and 2023. Plans had to be submitted in April for 2024 funds, but once the state or territory plan is approved by the GDO, they can use those funds to sub-award eligible applicants within their region. (Tribes directly receive the allocation to utilize how they deem necessary). Some states have already opened and closed their application process from the 2022 and 2023 funding allocations, while others have deadlines in place currently, or explain that a future deadline is imminent. There will be additional deadlines with the 2024 funds (allocations can be found here: https://netl.doe.gov/sites/default/files/2023-12/FY24%20Allocations%20Table.pdf) and so on until all funds have been allocated in 2026. Eligible sub-award applicants will include electric grid operators, electricity storage operators, and generators, transmission owners and operators, distribution providers, and fuel suppliers.
Examples of fundable resilience measures under the Grid Resilience State and Tribal Formula Grant:
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Weatherization technologies and equipment
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Fire-resistant technologies and fire prevention systems
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Monitoring and control technologies
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Undergrounding of electrical equipment
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Utility pole management
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Relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors
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Vegetation and fuel-load management
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Use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events, including microgrids; and battery-storage subcomponents
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Hardening of power lines, facilities, substations, of other systems
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Adaptive protection technologies
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Replacement of old overhead conductors and underground cables.
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Advanced modeling technologies
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The larger GRIP program awarded $3.46 billion for 58 projects across 44 states during the first round of funding, which means an additional $7 billion remains. However, the next round of funding ends in the spring of 2024. Still, there will be several billion remaining for future funding cycles.
Find out what each area funds below:
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Grid Resilience Utility and Industry Grants
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Comprehensive transformational transmission and distribution technology solutions that will mitigate multiple hazards across a region or within a community
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Smart Grid Grants
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Smart grid technologies demonstrating a pathway to wider market adoption
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Grid Innovation Program
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Interregional transmission projects, investments that accelerate interconnection of clean energy generation, utilization of distribution grid assets to provide backup power and reduce transmission requirements
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Through the Grid Deployment Office, plenty is being done to help strengthen the energy sector. GRIP is worth checking if you have a large, substantive project ready to go, but the Grid Resilience State and Tribal Formula Grant will be able to eligible organizations through a more streamlined application process, typically through a state’s energy department. Be sure to check your state’s website for additional information as it pertains to application requirements, deadlines, FAQs, and webinars. GDO itself provides detailed information through fact sheets about how each state plans to administer its directly allocated funds. As the federal government continues to place energy efficiency in the forefront, it is essential to know what funding is out there, and where the funding is typically going.