Article

A final chance to access billions in DOE’s GRIP funding

Key insights for organizations eyeing grid resilience and innovation

Nov. 15, 2024 · Authored by Michelle Isenhouer Hanlin, Austin Paul

Transformative organizations that are looking to benefit from the billions of dollars offered by the Grid Resilience and Innovation Partnerships (GRIP) program have one final opportunity to cash in.

The GRIP program is a bold initiative by the U.S. Department of Energy (DOE) aimed at strengthening and modernizing the nation’s power grid against the increasing threats of climate change and extreme weather events.

By investing in innovative technologies and strategies, GRIP funding supports the development of next-generation solutions to enhance grid resilience, reliability and efficiency. With an eye toward a cleaner, more sustainable energy future, the program seeks to equip communities with the tools they need to adapt to an evolving energy landscape.

Understanding the basics of GRIP

GRIP funding presents a significant opportunity for utilities and other organizations that are looking to improve or expand their infrastructure, particularly in the face of looming climate and weather threats.

GRIP has already launched two successful funding rounds, providing $7.6 billion to innovative projects aimed at enhancing grid resilience. Previous rounds have supported a diverse range of initiatives, from advanced grid technologies to new methods of addressing climate-driven disruptions.

Looking ahead, the third and final funding round – featuring an anticipated $2.9 billion in available grants – is focused on scaling these innovations and expanding efforts to integrate renewable energy sources, further boosting the grid's ability to withstand future challenges.

The round three notice of funding announcement is expected to take place this spring, but organizations should begin the planning and scoping process today. Because once the funding announcement occurs, organizations typically only have about two months to create and submit a concept paper – essentially a project summary that allows the DOE to either encourage or discourage the application.

At that point, the full application deadline won’t be far behind (three months). So, in short, the timing is tight, and the process is competitive. You need to have a well-planned project in the works before you even begin the grant application process, if you have any hopes of securing the funding dollars you need.

Digging deeper into the three GRIP topic areas

The GRIP program views applications through three distinct topic areas. It is important to understand the nuances of each one, as well as the breakdown of available funding out of the original $10.5 billion grant allocation.

Grid Resilience Grants (Topic Area 1)

Essentials: There was a total of $2.5 billion in funding allocated to this topic area split across the three funding rounds. The focus of Topic Area 1 is to modernize and strengthen the grid and reduce the likelihood and potential damage of severe weather. While wildfires, hurricanes, and other catastrophic weather events can obviously have a major impact on the grid, these events can be mitigated by certain technological and infrastructural changes. There is also a 100% cost share requirement for Topic Area 1 meaning the applicant must match the full amount of the federal grant with their own funds, covering the entire project cost.

Eligibility: Topic Area 1 applies to utilities, generally speaking. More specifically, eligible applicants include domestic entities that are:

• Electric grid operators
• Electricity storage operators
• Electricity generators
• Transmission owners or operators
• Distribution providers or fuel suppliers

Examples: Previously awarded projects under Topic Area 1 include:

• Sectionalization and circuit improvements to mitigate outage impacts
• Line hardening
• Pole replacements
• Microgrids
• Transmission line rebuilds
• Enhanced vegetation management distribution automation systems
• Wildfire prevention devices
• Advanced weather monitoring systems

Smart Grid Grants (Topic Area 2)

Essentials: This topic area is about increasing the flexibility, efficiency, reliability, and resilience of the grid with a particular focus on increasing the capacity of the transmission system, reducing queue-related delays and accelerating the clean energy buildout and integration of renewable energy onto the grid. In short, it's about building a more distributed energy system that draws from a diverse mix of renewable energy sources, moving away from the traditional, centralized approach that has long depended on fossil fuels to meet power demands. In this topic area, $3 billion in total funding was allocated across all three funding rounds, with a 50% cost share – notably different than the 100% cost share for Topic Area 1.

Eligibility: All entities that are eligible for Topic Area 1 are also eligible for Topic Area 2, in addition to:

• Institutions of higher education
• For-profit entities (including many investor-owned utilities)
• Not-for-profit entities
• State and local government entities
• Tribal nations

Examples: Previously awarded projects under Topic Area 2 include:

• High voltage direct current (HVDC) terminal expansion
• Fault location isolation and system restoration (FLISR)
• AI-enabled grid edge analytics
• Distributed energy resource management systems (DERMS)
• Dynamic line rating and many other grid-enhancing technologies (GETs)

Grid Innovation Program (Topic Area 3)

Essentials: There was a total of $5 billion in funding available for Topic Area 3 across the three funding rounds with a fairly broad definition of eligible projects. Projects that combine priorities from Topic Areas 1 and 2 (along with a more innovative twist) may be under consideration for Topic Area 3. At a high level, though, Topic Area 3 encourages high-impact innovative projects that improve grid reliability and resilience of the local, regional, or interregional grid. Applications may include technical or non-technical approaches that address the transmission system, the distribution system, storage or a combination of both. There is a 50% cost share for Topic Area 3.

Eligibility: For-profit entities are not eligible under Topic Area 3 and the DOE particularly seeks projects that include Independent System Operators (ISO), Regional Transmission Organizations (RTO), and/or Power Pools under this topic area. Eligible entities for Topic Area 3 include:

• States, or a combination of two or more states
• Tribal nations
• Unit of local government
• Public utility commission

Examples: Previously awarded projects under Topic Area 3 include:

• Innovative rate making techniques
• Innovative technologies for renewable dispatch
• Reliable island grid operation
• Implementation of advanced transmission technology

What steps should you take?

While the first round of funding was disclosed in November 2022 and the second round was announced in November 2023, the third round is not anticipated until the spring of 2025.

With that in mind, any organization potentially interested in funding should begin the process by visiting the following websites:

• The GRID Deployment Office (GDO) website: Sign up for their newsletter to ensure you don’t miss any announcements about the timing and substance of the next round of funding.
• The GRID website: Gain a deeper understanding for previously awarded projects, much like those shared above. You can also begin to scope your project now so that you are ready to start the application process as soon as the funding round is announced.
• The Infrastructure eXCHANGE website: All of the application material from previous rounds are housed here, including the funding opportunity announcement. It is anticipated that this will be the application portal for round three. Sign up for an account now.

There is urgency to begin this process because, as noted before, the timeline will move quickly. The race for billions of dollars is, as you would expect, highly competitive. And the process itself is complex, time-consuming and labor-intensive. The DOE wants to see comprehensive, well-developed applications, so it’s critical for your organization to begin thinking about factors like scope, budget and messaging.

Baker Tilly works closely with the DOE and understands how to tailor GRIP applications to their expectations. We guide organizations through every step of the federal funding application process, as well as the compliance process, addressing issues proactively and answering any questions along the way.

To discuss how our specialists can assist with your GRIP application process or address any questions you have, contact us today.