U.S. Energy Department Begins Implementation of $10.5 Billion Grid Resilience Programs

The U.S. Energy Department on Aug. 30 released a request for information on a $10.5 billion Grid Resilience and Innovation Partnership Program. The funding, backed by the 2021 Infrastructure Investment and Jobs Act, spans a five-year period from fiscal years 2022 through 2026 to prevent outages and enhance the resilience of the electric grid, deploy technologies to enhance grid flexibility, and demonstrate innovative approaches for the power sector infrastructure.

The newly launched Grid Deployment Office will administer the program. The department seeks input on a proposed implementation strategy for the program, which consists of three components:

• Grid Resilience Grants ($2.5 billion): The program supports activities to enhance the reliability of the electric grid and reduce the impact of extreme weather events and natural disasters. Electric grid operators and electricity storage operators, generators, distributors, and fuel suppliers are eligible for this program.
• Smart Grid Grants ($3 billion): The initiative aims to increase the transmission system’s capacity, thereby increasing the system’s flexibility, efficiency, and reliability. The program will exhibit a road map to broader market adoption of smart grid technologies. Grants are available to higher education institutions as well as for-profit and non-profit entities, state and local governments, and tribal nations.
• Grid Innovation Program ($5 billion): The program offers financial support to states, local governments, tribes, and public utility commissions to work together with electric sector operators and owners to improve grid resilience and reliability. It includes interregional transmission projects, investments to accelerate clean energy interconnection, and utilizing distribution grid assets to decrease transmission requirements.

The implementation of the program will be guided by the principles of equity, justice, and job creation in alignment with the administration’s Justice40 Initiative. To ensure the successful implementation of the program, the department will engage and collaborate with states, U.S. territories, and tribes, as well as with other interested stakeholders, including industry, unions, and local communities. The initiative supports the goal of providing 100 percent carbon-free electricity in the U.S. by 2035 and a net zero economy by 2050, as well as providing significant benefits to underprivileged communities.

A final funding opportunity announcement will be released later this year to request applications and concept papers for the fiscal year 2022 and 2023 funding. Comments on the proposed deployment strategy are due by Oct. 14.