The U.S. Department of Energy (DOE) is issuing, on behalf of the Grid Deployment Office (GDO), this Funding Opportunity Announcement (FOA). Awards made under this FOA will be funded, in whole or in part, with funds authorized under the Consolidated Appropriations Act, 2023 (Public Law 117-328).
Building a grid that can deliver affordable and reliable electricity to all Americans is a top priority of the Biden Administration. President Joseph R. Biden, Jr. signed and implemented the Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) that provide once-in-a-generation investment in the nation’s infrastructure. These investments provide the backbone for a more sustainable and resilient economy through enhancing U.S. competitiveness in the world, diversifying regional economies to include supply chain and manufacturing industries, creating good union jobs, and ensuring stronger access to economic and other benefits for underserved communities.
Creating more efficient and flexible wholesale electricity markets that will support a more resilient and reliable grid will be critical as new load and generation come online. Functioning wholesale markets provide a platform for energy trading and the integration of electric resources into the grid. Efficient, fair, and transparent market constructs are thus foundational to transitioning to a clean, reliable, and equitable electric grid.
Additional renewable resources, distributed energy resources (DERs), and transmission infrastructure upgrades or build-outs are increasingly being deployed to cost-effectively meet clean energy goals. This requires maintaining, modernizing, and investing in the U.S. power grid at all levels from distribution to the bulk power system. GDO is developing programs that make these historic investments. The Department is deploying programs to support a more resilient and reliable grid to protect against the increasing number of extreme weather events that cause energy supply disruptions by investing in innovative efforts to upgrade and build out the transmission system and connecting regions and working with existing clean dispatchable generating facilities to maintain grid reliability. Wholesale electricity markets need to accommodate and even incentivize these changes in the energy industry to maintain a reliable, resilient, affordable, and equitable grid.
This FOA will assist applicants—States, Regional Transmission Organizations (RTOs)/Independent System Operators (ISOs, and domestic entities that have partnered with States and/or RTOs/ISOs--to perform analytical studies on critical market issues or convene stakeholders to address issues facing developing or existing wholesale markets. GDO suggests five (5) broad analytical priorities for proposed projects: 1) seams between markets, 2) regional resource adequacy, 3) market design and price formation, 4) regional footprint studies, and 5) integrated regional planning approaches
Round 1 Deadlines:
Round 2 Deadlines:
Round 3 Deadlines:
Topic Area 1: Analytical Studies
Market concepts that GDO considers ripe for analytical studies are outlined below. Proposed projects can draw from elements of any one of the five concepts in this FOA or may include areas of analysis not contemplated in this FOA. If submitting an application that covers multiple topic areas, separate applications must be submitted each area.
Topic Area 2: Education and Convenings
GDO intends to facilitate State (individually or in collaboration with other States), public interest organization, and utility convening and education programs, which can be replicated to benefit additional States and RTOs/ISOs. Accordingly, DOE seeks applications for multi-state stakeholder educational efforts or convenings to consensus-build on market structures or reforms available in or appropriate for differing regions related to wholesale electricity markets. Convenings on wholesale electricity markets must involve more than one State and/or RTO/ISO. This convening topic area may include multi-state efforts to organize new wholesale markets, including developing or expanding DAMs. Education on wholesale electricity markets could include activities such as developing informational materials on wholesale markets for State agencies, including utility commissions and State energy offices.
These entities are eligible to apply as prime recipients either individually or in partnership with other domestic entities or subrecipients:
These entities are eligible to apply as prime recipients, provided they include a State or RTO/ISO as a partner on the application/project team:
An entity may submit more than one Concept Paper and Full Application to this FOA, provided that each application describes a unique, scientifically distinct project and provided that an eligible Concept Paper was submitted for each Full Application
GDO expects to make a total of approximately $9 million of federal funding available for new awards under this FOA, subject to the availability of appropriated funds. GDO anticipates making approximately 6 to 14 awards under this FOA. GDO may issue one, multiple, or no awards. Individual awards for Topic Area 1 and Topic Area 2 may vary between $0.5 million and $3 million.
