DC-GRIDS CP + FA NOFO - Modification 02.pdf

FINANCIAL ASSISTANCE

NOTICE OF FUNDING OPPORTUNITY

ADVANCED RESEARCH PROJECTS AGENCY – ENERGY (ARPA-E)

U.S. DEPARTMENT OF ENERGY

DISRUPTIVE DC CONVERTERS FOR GRID RESILIENT

INFRASTRUCTURE TO DELIVER SUSTAINABLE ENERGY

(DC-GRIDS)

Announcement Type: Modification 01 Modification 02 Notice of Funding Opportunity No. DE-FOA-0003499

Assistance Listing Number 81.135

Mod. No. Date Description of Modifications* 02 2/7/2025 • Clarified the meaning of the Program Policy Factors in Section

V.C 01 1/16/2025 • Inserted certain deadlines, including deadlines for submitting questions and Full Applications, see Cover Page and Required Documents Checklist.

• Updated language in Section I.D, I.E and V.2 regarding Category B.

• Updated guidance on submitting a Summary Slide, see Application Contents and Format.

• Updated guidance on submitting Business Assurance and Disclosure Forms, see Application Contents and Format.

• Added information regarding eXCHANGE login using Enhanced Identity Proofing, see Use of ARPA-E eXCHANGE.

• Added Section VIII.E Technology Protection Plan and VIII.F Material Supply Plan.

*All modifications to the Notice of Funding Opportunity (NOFO) are highlighted in yellow in the body of the

NOFO.

NOFOs are posted on ARPA-E eXCHANGE (https://arpa-e-foa.energy.gov/), Grants.gov (http://www.grants.gov/), and FedConnect (https://www.fedconnect.net/FedConnect/). Any modifications to the NOFO are also posted to these websites. You can receive an e-mail when a modification is posted by registering with FedConnect as an interested party for this NOFO. It is recommended that you register as soon as possible after release of the NOFO to ensure that you receive timely notice of any modifications or other announcements.

https://arpa-e-foa.energy.gov/ http://www.grants.gov/ https://www.fedconnect.net/FedConnect/

TABLE OF CONTENTS

BASIC INFORMATION

I. FUNDING OPPORTUNITY DESCRIPTION

A. AGENCY OVERVIEW

B. PROGRAM OVERVIEW

C. PROGRAM OBJECTIVES

D. TECHNICAL CATEGORIES OF INTEREST

E. TECHNICAL PERFORMANCE TARGETS

F. STATEMENT OF SUBSTANTIAL INVOLVEMENT

G. FUNDING RESTRICTIONS

1. ALLOWABLE COSTS

2. PRE-AWARD COSTS

3. PATENT COSTS

4. CONSTRUCTION

5. FOREIGN TRAVEL

6. PERFORMANCE OF WORK IN THE UNITED STATES

7. PURCHASE OF NEW EQUIPMENT

8. TECHNOLOGY TRANSFER AND OUTREACH

9. LOBBYING

10. CONFERENCE SPENDING

11. INDEPENDENT RESEARCH AND DEVELOPMENT COSTS

12. BUY AMERICA REQUIREMENT FOR PUBLIC INFRASTRUCTURE PROJECTS

13. REQUIREMENT FOR FINANCIAL PERSONNEL

14. PARTICIPANTS, COLLABORATING ORGANIZATIONS, AND CURRENT AND PENDING SUPPORT

II. ELIGIBILITY INFORMATION

A. ELIGIBLE APPLICANTS

1. INDIVIDUALS

2. DOMESTIC ENTITIES

3. CONSORTIA

4. FOREIGN NATIONAL PARTICIPATION FROM COUNTRIES OF CONCERN

5. FOREIGN PARTICIPATION CONSIDERATIONS

B. COMPLIANCE AND RESPONSIVENESS

C. LIMITATION ON NUMBER OF SUBMISSIONS

D. COST SHARING

1. BASE COST SHARE REQUIREMENT

2. INCREASED COST SHARE REQUIREMENT

3. REDUCED COST SHARE REQUIREMENT

4. LEGAL RESPONSIBILITY

5. COST SHARE ALLOCATION

6. COST SHARE TYPES AND ALLOWABILITY

7. COST SHARE CONTRIBUTIONS BY FFRDCS AND GOGOS

8. COST SHARE VERIFICATION

III. APPLICATION CONTENTS AND FORMAT

A. GENERAL APPLICATION CONTENT REQUIREMENTS

1. MARKING OF CONFIDENTIAL INFORMATION

2. EXPORT CONTROL INFORMATION

B. CONCEPT PAPERS

1. FIRST COMPONENT: CONCEPT PAPER

2. SECOND COMPONENT: SUMMARY SLIDE

C. FULL APPLICATIONS

1. FIRST COMPONENT: TECHNICAL VOLUME

2. SECOND COMPONENT: SF-424

3. THIRD COMPONENT: BUDGET JUSTIFICATION WORKBOOK/SF-424A

4. FOURTH COMPONENT: SUMMARY FOR PUBLIC RELEASE

5. FIFTH COMPONENT: SUMMARY SLIDE

6. SIXTH COMPONENT: BUSINESS ASSURANCES & DISCLOSURES FORM

D. REPLIES TO REVIEWER COMMENTS

IV. SUBMISSION REQUIREMENTS AND DEADLINES

A. UNIQUE ENTITY IDENTIFIER AND SAM REGISTRATION

B. USE OF ARPA-E EXCHANGE

C. REQUIRED DOCUMENTS CHECKLIST AND DEADLINES

D. COMPLIANCE

E. INTERGOVERNMENTAL REVIEW

V. APPLICATION REVIEW INFORMATION

A. RESPONSIVENESS

1. TECHNICAL RESPONSIVENESS REVIEW

2. SUBMISSIONS SPECIFICALLY NOT OF INTEREST

B. REVIEW CRITERIA

1. CRITERIA FOR CONCEPT PAPERS

2. CRITERIA FOR FULL APPLICATIONS

3. CRITERIA FOR REPLIES TO REVIEWER COMMENTS

C. PROGRAM POLICY FACTORS

D. REVIEW AND SELECTION PROCESS

1. CONCEPT PAPERS

2. FULL APPLICATIONS

3. REPLY TO REVIEWER COMMENTS

4. PRE-SELECTION CLARIFICATIONS AND “DOWN-SELECT” PROCESS

5. SELECTION FOR AWARD NEGOTIATIONS

E. ARPA-E REVIEWERS

F. ARPA-E SUPPORT CONTRACTORS

G. RISK REVIEW

VI. AWARD NOTICES AND AWARD TYPES

A. AWARD NOTICES

1. REJECTED SUBMISSIONS

2. CONCEPT PAPER NOTIFICATIONS

3. FULL APPLICATION NOTIFICATIONS

B. PRE-AWARD COSTS

C. RENEWAL AWARDS

D. FUNDING AGREEMENT TYPES

1. COOPERATIVE AGREEMENTS

2. FUNDING AGREEMENTS WITH FFRDCS/DOE LABS, GOGOS, AND FEDERAL INSTRUMENTALITIES

3. OTHER TRANSACTIONS AUTHORITY

VII. POST-AWARD REQUIREMENTS AND ADMINISTRATION

A. NATIONAL POLICY REQUIREMENTS

1. NATIONAL POLICY ASSURANCES

2. ENVIRONMENTAL IMPACT QUESTIONNAIRE

B. ADMINISTRATIVE REQUIREMENTS

1. COST SHARE PAYMENTS

2. INTELLECTUAL PROPERTY AND DATA MANAGEMENT PLANS

3. U.S. COMPETITIVENESS

4. NONDISCLOSURE AND CONFIDENTIALITY AGREEMENTS REPRESENTATIONS

5. INTERIM CONFLICT OF INTEREST POLICY FOR FINANCIAL ASSISTANCE

6. COMPLIANCE AUDIT REQUIREMENT

7. RESEARCH SECURITY TRAINING REQUIREMENT

C. REPORTING

1. FRAUD, WASTE, AND ABUSE

2. COMMERCIALIZATION PLAN AND SOFTWARE REPORTING

VIII. OTHER INFORMATION

A. TITLE OF SUBJECT INVENTIONS

B. GOVERNMENT RIGHTS IN SUBJECT INVENTIONS

1. GOVERNMENT USE LICENSE

2. MARCH-IN RIGHTS

C. RIGHTS IN TECHNICAL DATA

D. PROTECTED PERSONALLY IDENTIFIABLE INFORMATION

E. TECHNOLOGY PROTECTION PLAN

F. MATERIAL SUPPLY PLAN

IX. GLOSSARY

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Email ExchangeHelp@hq.doe.gov (with NOFO name and number in subject line).

AR-311-10.24

BASIC INFORMATION

KEY DATES:

Notice of Funding Opportunity (NOFO) Issue Date: November 7, 2024 Deadline for Concept Paper Questions to ARPA-E-CO@hq.doe.gov: 5 PM ET, December 2, 2024 Submission Deadline for Concept Papers: 9:30 AM ET, December 10, 2024 Anticipated Date for Encourage/Discourage Notifications: January 16, 2025 Deadline for Full Application Questions to ARPA-E-CO@hq.doe.gov: 5 PM ET, February 28, 2025 Submission Deadline for Full Applications: 9:30 AM ET, March 3, 2025 Expected Reviewer Comment Release Date: 5 PM ET, April 1, 2025 Submission Deadline for Replies to Reviewer Comments: 5 PM ET, April 4, 2025 Anticipated Timeframe for Selection Notifications: June 2025 Anticipated Timeframe for Award: September 2025 Anticipated Period of Performance: September 2025 – September

BASIC INFORMATION:

Total Amount to Be Awarded

Approximately $38 million, subject to the availability of appropriated funds to be shared between NOFOs DE-FOA-0003499 and DE-FOA-0003500.

Anticipated Number and Value of Awards

ARPA-E anticipates making approximately 10-12 awards between NOFOs DE-FOA- 0003499 and DE-FOA-0003500. ARPA-E may issue one, multiple, or no awards under this NOFO. The Federal share of awards may vary between $500,000 and $10 million.

Agency Contact Information

• Questions and answers (Q&As) about ARPA-E and this specific NOFO:

http://arpa-e.energy.gov/faq.

• Send other questions about the NOFO to: ARPA-E-CO@hq.doe.gov.

• Send questions about use of ARPA-E eXCHANGE to:

ExchangeHelp@hq.doe.gov.

Upon the issuance of a NOFO, only the Grants Officer via ARPA-E-CO@hq.doe.gov may communicate with Applicants. This “quiet period” remains in effect until ARPA-E’s public announcement of project selections. Emails sent to other email addresses will be disregarded.

The rising electricity demand from data centers, the electrification of transportation, and U.S.-based manufacturing calls for a significant increase in energy supply. Offshore wind, solar photovoltaics, and new nuclear power have the potential to meet the increased demand.

However, the U.S. will require a massive expansion of its transmission capacity to move that electricity promptly and reliably to where it is needed.

High-voltage direct current (HVDC) transmission can transport electrical power more efficiently than conventional alternating current (AC) transmission over long distances. The goal of DC- GRIDS is to enable the rapid expansion of the grid’s capacity by making HVDC transmission systems cost-comparable with conventional AC technology. This will lead to higher grid resiliency, energy availability, performance, and lower deployment time (if HVDC can use the existing overhead and underground transmission infrastructure rights-of-way). The program will also enable true multi-directional power routing with flexible interconnections between new and existing AC and direct current (DC) lines, making integration of sustainable energy https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov mailto:ARPA-E-CO@hq.doe.gov mailto:ARPA-E-CO@hq.doe.gov http://arpa-e.energy.gov/faq mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov mailto:ARPA-E-CO@hq.doe.gov

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sources faster and easier.

This program will focus on two technical categories:

1. Category A: Novel submodules and modular high-voltage power electronic valves; and

2. Category B: Technologies that enable highly compact multi-terminal converter stations.

Technological breakthroughs under Category A will enable the availability of low-cost, vendor-agnostic valves that can be plug-and-play-ready and able to flexibly operate together in the same HVDC converter station. This would lead to a competitive economy that will drive down the cost of valves, and consequently converters, enabling their wider deployment. Technologies under Category B will make conversion of existing AC substations into HVDC converter stations possible. By realizing a higher-capacity grid where DC and AC transmission operates in a highly coordinated fashion, DC-GRIDS can lead to higher grid resiliency and significantly improved flexibility when integrating new electricity sources (e.g., offshore wind) onto the U.S. grid.

ARPA-E expects that scientists and engineers will form project teams with expertise in power electronics, power systems, digital control, insulation, thermal management and other related fields. Interdisciplinary and cross-sector collaboration and partnership with system integrators, equipment vendors, developers, utilities, and/or independent system operators will be critical in achieving advances in novel HVDC technology.

https://arpa-e.energy.gov/faqs

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I. FUNDING OPPORTUNITY DESCRIPTION

A. AGENCY OVERVIEW

The Advanced Research Projects Agency – Energy (ARPA-E), an organization within the Department of Energy (DOE), is chartered by Congress in the America COMPETES Act of 2007 (P.L. 110-69), as amended by the America COMPETES Reauthorization Act of 2010 (P.L. 111- 358), as further amended by the Energy Act of 2020 (P.L. 116-260):

“(A) to enhance the economic and energy security of the United States through the development of energy technologies that—

(i) reduce imports of energy from foreign sources;

(ii) reduce energy-related emissions, including greenhouse gases;

(iii) improve the energy efficiency of all economic sectors;

(iv) provide transformative solutions to improve the management, clean-up, and disposal of radioactive waste and spent nuclear fuel; and

(v) improve the resilience, reliability, and security of infrastructure to produce, deliver, and store energy; and

(B) to ensure that the United States maintains a technological lead in developing and deploying advanced energy technologies.”

ARPA-E issues this Notice of Funding Opportunity (NOFO) under its authorizing statute codified at 42 U.S.C. § 16538. The NOFO and any cooperative agreements or grants made under this NOFO are subject to 2 C.F.R. Part 200 as supplemented by 2 C.F.R. Part 910.

ARPA-E funds research on, and the development of, transformative science and technology solutions to address the energy and environmental missions of the Department. The agency focuses on technologies that can be meaningfully advanced with a modest investment over a defined period of time in order to catalyze the translation from scientific discovery to early-stage technology. For the latest news and information about ARPA-E, its programs and the research projects currently supported, see: http://arpa-e.energy.gov/.

ARPA-E funds transformational research. Existing energy technologies generally progress on established “learning curves” where refinements to a technology and the economies of scale that accrue as manufacturing and distribution develop drive improvements to the cost/performance metric in a gradual fashion. This continual improvement of a technology is important to its increased commercial deployment and is appropriately the focus of the private sector or the applied technology offices within DOE. In contrast, ARPA-E supports transformative research that has the potential to create fundamentally new learning curves.

ARPA-E technology projects typically start with cost/performance estimates well above the level of an incumbent technology. Given the high risk inherent in these projects, many will fail to progress, but some may succeed in generating a new learning curve with a projected cost/performance metric that is significantly better than that of the incumbent technology.

ARPA-E will provide support at the highest funding level only for submissions with significant technology risk, aggressive timetables, and careful management and mitigation of the https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov http://arpa-e.energy.gov/

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associated risks.

ARPA-E funds technology with the potential to be disruptive in the marketplace. The mere creation of a new learning curve does not ensure market penetration. Rather, the ultimate value of a technology is determined by the marketplace, and impactful technologies ultimately become disruptive – that is, they are widely adopted and displace existing technologies from the marketplace or create entirely new markets. ARPA-E understands that definitive proof of market disruption takes time, particularly for energy technologies. Therefore, ARPA-E funds the development of technologies that, if technically successful, have clear disruptive potential, e.g., by demonstrating capability for manufacturing at competitive cost and deployment at scale.

ARPA-E funds applied research and development (R&D). The Office of Management and Budget defines “applied research” as an “original investigation undertaken in order to acquire new knowledge…directed primarily towards a specific practical aim or objective” and defines “experimental development” as “creative and systematic work, drawing on knowledge gained from research and practical experience, which is directed at producing new products or processes or improving existing products or processes.”0F

1 Applicants interested in receiving financial assistance for basic research (defined by the Office of Management and Budget as “experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts”)1 should contact the DOE’s Office of Science (http://science.energy.gov/). Office of Science national scientific user facilities (http://science.energy.gov/user-facilities/) are open to all researchers, including ARPA-E Applicants and awardees. These facilities provide advanced tools of modern science including accelerators, colliders, supercomputers, light sources and neutron sources, as well as facilities for studying the nanoworld, the environment, and the atmosphere. Projects focused on early-stage R&D for the improvement of technology along defined roadmaps may be more appropriate for support through the DOE applied energy offices including: the Office of Energy Efficiency and Renewable Energy (http://www.eere.energy.gov/), the Office of Fossil Energy and Carbon Management (https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management), the Office of Nuclear Energy (http://www.energy.gov/ne/office-nuclear-energy), and the Office of Electricity (https://www.energy.gov/oe/office-electricity).

ARPA-E encourages submissions stemming from ideas that still require proof-of-concept R&D efforts as well as those for which some proof-of-concept demonstration already exists.

Submissions can propose a project with the end deliverable being an extremely creative, but partial solution.

B. PROGRAM OVERVIEW

1. SUMMARY

The Disruptive dc Converters for Grid Resilient Infrastructure to Deliver Sustainable energy (DC- GRIDS) program will target transformative technologies that enable a multi-terminal high-

1 OMB Circular A-11 (https://www.whitehouse.gov/wp-content/uploads/2018/06/a11_web_toc.pdf), Section 84, pg. 3.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov http://science.energy.gov/ http://science.energy.gov/user-facilities/ http://www.eere.energy.gov/ https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management http://www.energy.gov/ne/office-nuclear-energy https://www.energy.gov/oe/office-electricity

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voltage direct current (MT-HVDC) transmission macrogrid. It will enable multi-directional power routing, flexible interconnections between existing and new alternating current (AC) and direct current (DC) lines, and the easier addition of sustainable energy sources. Furthermore, a MT- HVDC macrogrid would accelerate adoption of offshore power transmission, conversion of high-voltage alternating current (HVAC) corridors to HVDC, and interconnection of the three U.S. electrical grids. This program seeks to enable the rapid expansion of existing grid capacity, while improving resiliency and performance.

2. BACKGROUND AND MOTIVATION

HVDC lines transport electrical power more efficiently than HVAC lines over long distances, particularly in underground or subsea applications, and may allow for 3.5 times the capacity of existing HVAC rights-of-way.1F

2 However, there are several barriers to wider HVDC adoption, including:

• A lack of understanding regarding the interaction of HVDC and the surrounding HVAC system;

• An absence of domestic supply chains and availability of HVDC equipment;

• High terminal equipment and installation costs;

• Insufficient standardization among vendors;

• Large footprints and volumes (which are a driver of higher costs);2F

3 and

• A lack of coordinated system-level controls validated with mature modeling and simulation methods.3F

4, 4F

Despite the noted barriers, there are several HVDC back-to-back converter stations linking the

U.S. Eastern, Western, and Texas interconnections that allow small amounts of power to flow between them. There are also a few isolated point-to-point HVDC lines that transmit hydropower-generated electricity from the Pacific Northwest to Southern California and fromQuébec to New England, with several more in development. HVDC is widely used in Europe, Asia, and other parts of the world to efficiently move gigawatts (GW) of electric power subsea or over long distances.5F

As shown in Figure 1, terminal costs (i.e., the cost of the HVDC stations that convert and control the DC power flow) are the driving factor in the cost break-even point between HVDC and HVAC

2 EPRI. “Leveraging Existing Infrastructure: Increasing the Capacity of Transmission Lines and Rights-of-Way,” (September 2021). https://www.epri.com/research/products/000000003002023004.

3 In this NOFO, “footprint” refers to the size of onshore converter stations, while “volume” refers to the size of offshore converter stations.

4 Gomis-Bellmunt, Oriol, Joan Sau-Bassols, Eduardo Prieto-Araujo, and Marc Cheah-Mane. “Flexible Converters for Meshed HVDC Grids: From Flexible AC Transmission Systems (Facts) to Flexible DC Grids.” IEEE Transactions on Power Delivery 35,

no. 1 (February 2020): 2–15. https://doi.org/10.1109/tpwrd.2019.2939588.

5 Ray Chaudhuri, Nilanjan, Balarko Chaudhuri, Rajat Majumder, and Amirnaser Yazdani. Multi-terminal direct-current grids, September 8, 2014. https://doi.org/10.1002/9781118960486.

6 McCalley, James. "High Voltage DC Transmission." Iowa State University (2024).

https://home.engineering.iastate.edu/jdm/ee552/HVDC1.pdf.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://www.epri.com/research/products/000000003002023004 https://doi.org/10.1109/tpwrd.2019.2939588 https://doi.org/10.1002/9781118960486 https://home.engineering.iastate.edu/jdm/ee552/HVDC1.pdf

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transmission.

Figure 1. The cost break-even distance for AC and DC transmission before and after the program.6F

Offshore wind, solar photovoltaics, and new nuclear power have the largest potential impact in meeting the U.S. goal of net-zero greenhouse gas emissions by 2050.7F

8 The U.S. is expected to invest around $65 billion in offshore wind by the end of the decade, with capacity ramping up to around 14 GW by 2030, 30 GW by 2033, and 40 GW by 2035.8F

9, 9F

10 This will help meet surging electricity demand from data centers, manufacturing, and electrified transportation. Electricity demand from information technology equipment in U.S. data centers alone is expected to increase from 21 GW in 2023 to more than 50 GW by 2030.10F

11 The power grid is the backbone of the U.S. electricity sector, and it must adapt to achieve these increased capacity requirements while maintaining reliability and resiliency.

To meet the need for a cost-competitive HVDC electric grid, the DOE established the HVDC COst REduction (CORE) initiative. CORE supports R&D to reduce annual levelized cost for HVDC converter stations by 35% by 2035 to $210 per megawatt (MW) per kilovolt (kV).11F

12 DC-GRIDS

7 Figure created using information from Kalair, A., N. Abas, and N. Khan. “Comparative Study of HVAC and HVDC Transmission Systems.” Renewable and Sustainable Energy Reviews 59 (June 2016): 1653–75.

https://doi.org/10.1016/j.rser.2015.12.288.

8 U.S. White House. “The Long-term Strategy of the United States: Pathways to Net-Zero Greenhouse Gas Emissions by 2050” (2021). https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf 9 Bradstock, Felicity. “Billions Pouring into U.S. Offshore Wind despite Setbacks,” Yahoo! Finance (August 2024).

https://finance.yahoo.com/news/billions-pouring-u-offshore-wind-210000864.html?guccounter=1.

10 U.S. DOE. “Advancing Offshore Wind Energy in the United States,” (March 2023).

https://www.energy.gov/sites/default/files/2023-03/advancing-offshore-wind-energy-highlights.pdf.

11 Kearney, Laila, Seher Dareen, and Deep Kaushik Vakil. “US electric utilities brace for surge in power demand from Data Centers”, Reuters (April 2024). https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/.

12 U.S. Department of Energy. “HVDC cost reduction (core) initiative.” Accessed October 28, 2024.

https://www.energy.gov/oe/hvdc-cost-reduction-core-initiative.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://doi.org/10.1016/j.rser.2015.12.288 https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf https://finance.yahoo.com/news/billions-pouring-u-offshore-wind-210000864.html?guccounter=1 https://www.energy.gov/sites/default/files/2023-03/advancing-offshore-wind-energy-highlights.pdf https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/ https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/ https://www.energy.gov/oe/hvdc-cost-reduction-core-initiative

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12F

13F

14F

16F

17F will develop disruptive DC converter station technology to enable true multi-port MT-HVDC converter stations. This will lead to MT-HVDC stations being cost-comparable with AC substations, increased system resiliency, and reduced deployment times through the use of existing infrastructure.

Since its inception in 2009, ARPA-E has been a catalyst for breakthroughs in the domain of power electronics, launching the following programs in the past decade:

• Green Electricity Network Integration (GENI);12F

• Agile Delivery of Electrical Power Technology (ADEPT);13F

• Creating Innovative and Reliable Circuits Using Inventive Topologies and

Semiconductors (CIRCUITS);14F

Building Reliable Electronics to Achieve Kilovolt Effective Ratings Safely (BREAKERS);15F

16 and

• Unlocking Lasting Transformative Resiliency Advances by Faster Actuation of power

Semiconductor Technologies (ULTRAFAST).16F

The agency has invested more than $300 million, enabling significant technological progress and subsequent commercialization in power electronics and supporting U.S. technological leadership in advanced power conversion technologies. The goals of this NOFO are complemented by previous and current program activities at ARPA-E. The scope of this program, however, is distinct in that it addresses new challenges related to high-voltage powerelectronics for HVDC not previously supported by ARPA-E. Some of the distinctive elements are the design of power electronics modular valves that stack up to more than half a million volts with kiloampere-level currents, environmentally friendly approaches to gas/liquid/solid insulation for power electronics, and high frequency galvanic isolation methods.

3. TECHNICAL DESCRIPTION

HVDC converter stations have been in operation since 1954.5 These legacy stations traditionally used current-sourced (i.e., relatively constant DC-link current, variable DC-link voltage) converters that do not support black start capabilities or provide ancillary services. These converters are made up of high-power, current-commutated thyristors organized in valves, and require significant harmonic filtering.

Since the advent of high-voltage, high-current, self-commutating transistors, new voltage-

13 “ARPA-E’s GENI Program: Green Electricity Network Integration.” ARPA-E. Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/geni.

14 “ARPA-E’s ADEPT Program: Agile Delivery of Electrical Power Technology.” ARPA-E. Accessed October 27, 2024.

https://arpa-e.energy.gov/technologies/programs/adept.

15 “ARPA-E’s CIRCUITS Program: Creating Innovative and Reliable Circuits Using Inventive Topologies and Semiconductors.”

ARPA-E. Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/circuits.

16 “ARPA-E’s BREAKERS Program: Building Reliable Electronics to Achieve Kilovolt Effective Ratings Safely.” ARPA-E. Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/breakers.

17 “ARPA-E’s ULTRAFAST Program: Unlocking Lasting Transformative Resiliency Advances by Faster Actuation of Power Semiconductor Technologies.” ARPA-E. Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/ultrafast.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://arpa-e.energy.gov/technologies/programs/geni https://arpa-e.energy.gov/technologies/programs/geni https://arpa-e.energy.gov/technologies/programs/adept https://arpa-e.energy.gov/technologies/programs/circuits https://arpa-e.energy.gov/technologies/programs/breakers https://arpa-e.energy.gov/technologies/programs/ultrafast https://arpa-e.energy.gov/technologies/programs/ultrafast

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sourced topologies have emerged for HVDC converters that require less filtering and can support numerous grid functions. In the last two decades, the modular-multilevel converter (MMC)) has increasingly become the preferred option for newer HVDC installations. This is in part due to its ability to stack modules with voltages referenced to adjacent modules rather than to ground, little-to-no filtering needs, and inherent manufacturability and scalability.17F

MMC topologies still require very large single-phase, low frequency transformers for voltage conditioning, galvanic isolation, protection, harmonic filtering, and phase shifting. Large DC-link capacitors are also critical for single-phase operation. The single-phase transformer and bushing structure require long manufacturing times and occupy a very large footprint or volume with complicated permitting and transportation requirements. These factors render HVDC solutions very expensive with long development times and are limiting for space-constrained urban areas and offshore applications.

Un-pressurized air is typically used as an insulator, and it is also a major driver of converter station (commonly referred to as ‘valve hall’) volume. Despite the strict control of HVDC valve hall air quality, the maximum surface field of corona shields is still designed to be less than 20 kV per centimeter.18F

19 This also contributes to the extremely large volume of converter stations. Hence, there is a need to explore other converter topologies and/or different insulation, isolation, and cooling options.

DC-GRIDS supports the development of converter technologies that would bring the initial investment cost of MT-HVDC stations down to levels comparable to AC substations (seeFigure 1). This program also aims to significantly increase the power density of future HVDC stations without impacting their lifetimes.

This NOFO assumes that the baseline cost per size of an ±525 kVdc HVDC station is roughly $1 billion per gigawatt at 2 kW per cubic meter offshore and $250 million at 35 kW per square meter onshore. 19F

20, 20F

C. PROGRAM OBJECTIVES

The goal of this program is to support the development of key technologies and control techniques to enable the construction of an MT-HVDC macrogrid on existing infrastructure in the U.S. DC-GRIDS also aims to inform MT-HVDC interconnection, design, and interoperability

18 Marquardt, R. “Modular Multilevel Converter: An Universal Concept for HVDC-Networks and Extended DC-Bus- Applications.” The 2010 International Power Electronics Conference - ECCE ASIA -, June 2010.

https://doi.org/10.1109/ipec.2010.5544594.

19 Shi, Yuxin, and Zezhong Wang. “Calculating for Surface Electric Field of Converter Valve Shield System with Fast Multipole Curved Boundary Element Method.” The Journal of Engineering 2019, no. 16 (January 15, 2019): 1575–79.

https://doi.org/10.1049/joe.2018.8647.

20 General Electric Grid Solutions. “DolWin3 HVDC Voltage Source Converters for Efficient Connection of Renewable Energy”, GEGridSolutions.com (2019). Accessed October 28, 2024.

https://www.gevernova.com/gridsolutions/products/applications/hvdc/hvdc-vsc-dolwin3-case-study-en-2018-11-grid-pea- 0578.pdf.

21 Furyk, Marek, Kirby, Neil. 2024.“Future Development of HVDC Stations.” https://arpa-e.energy.gov/sites/default/files/Marek%20Furyk.pdf.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://doi.org/10.1109/ipec.2010.5544594 https://doi.org/10.1049/joe.2018.8647

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standards. This effort will help ARPA-E meet its statutory goals by improving energy infrastructure resiliency, strengthening domestic HVDC technology, and increasing the ability to bring large amounts of low-emission electricity online. Figure 2 illustrates how MT-HVDC macrogrid technologies are envisioned to transform the existing regional AC grids into a fully integrated electrical power superhighway by interconnecting new electricity sources.

Figure 2. The MT-HVDC macrogrid vision and detail of one of the multi-terminal, multi-port stations (as an example). To qualify as a multi-terminal converter station, each port must have an ability to regulate current, voltage, and frequency (if AC) and reroute power on demand.

DC-GRIDS is seeking disruptive technologies that can significantly improve the state-of-the-art (SOA) of HVDC stations and, more importantly, enable new concepts for a multi-terminal, multi-vendor, high-voltage transmission grid that currently does not exist.

There are several key innovations that this program seeks to address. ARPA-E encourages applications specifically focused on the following areas:

Modular high-voltage power electronic valves;

Novel high-performance compact submodules;

Technologies that enable highly compact multi-terminal stations with multi-port converters;

Converter topologies without a low-frequency transformer;

HVDC converter stations that use gas, liquid, and/or solid insulations and coolants with minimal global warming potentials; and Solutions for AC-to-DC substation (and AC-to-DC transmission line) conversion.

The focus on novel high-voltage power electronic valves is to enable lower cost, vendor-agnostic, and mass-produced kV-level submodules and greater than 30 kV-rated modular converter valves with standardized interoperability and redundancy. This will enable low-cost, https://arpa-e.energy.gov/faqs

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mass-produced and compact multi-terminal converter stations.

Similarly, the focus on MT-HVDC converter station technology is to develop standardized, highly compact, vendor-agnostic, lower-cost stations. This will enable high grid resiliency, capacity release of the existing grid, and significantly improved flexibility and operational performance.

The goal is to enable conversion of existing AC substations into HVDC converter stations for a networked DC grid by reducing the footprint of the conventional HVDC stations by three times.

Additionally, a volume reduction of offshore converter stations by five times is required to achieve lower-cost and higher-speed offshore wind technology deployment. Achieving these goals will lower the capital investment cost of offshore HVDC stations as illustrated in Figure 3.

Furthermore, the program aims to support the development of high-fidelity electromagnetic transient models of submodules, valves, multi-port HVDC converters, and associated components. These high-fidelity models will help to plan, design and operate multi-terminal AC and DC mixed grid systems with the aid of real-time simulations and emulations. The fidelity of certain models will be validated with hardware developed under this program.

Figure 1. This visualization of the potential result of DC-GRIDS shows reduced size air-insulated (onshore) or gas-insulated (offshore) HVDC converters as compared to conventional MMC-based converter designs. (Only converter stations are illustrated for simplicity, with no auxiliary station circuitry included.)

D. TECHNICAL CATEGORIES OF INTEREST

The program is comprised of two technical categories to support the program objectives outlined in Section I.C. Applicants can submit to Category A, Subcategory B1, Subcategory B2, or any combination thereof. Team collaboration between Categories A and B is not required but highly encouraged.

All teams will be required to share validated electromagnetic transient (EMT) models of their valves and converter stations with each other and ultimately publicly as open source software https://arpa-e.energy.gov/faqs

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(Open Source is defined as using a generally recognized open software standard such as those approved at http://opensource.org/osd). To the extent the software code is a modular add-on that requires access to additional software not available as compatible open source, such additional software must be generally available to any users of the model. These software models will need to run on a real-time modeling platform of their choosing that may be integrated in a large system model.

All teams will be required to provide their proposed interoperability standards so that they can be made publicly available without any restriction on further use or disclosure and not subject to any claim of intellectual property rights. These may be used for standards development outside the scope of this NOFO.

Applicants for Category B are encouraged to partner with system integrators, utilities, and/or independent system operators (ISOs) to use real transmission system data for their designs.

Category B awardees will treat their partner system data as confidential. To the extent suchdata contains or constitutes Critical Energy/Electric Infrastructure Information (CEII), that data will be maintained according to all applicable requirements and established industry best practices.21F

1. CATEGORY A – NEW POWER ELECTRONIC VALVES FOR HVDC CONVERTERS

Submissions to this category will propose improved, high-performance modular valves for MT- HVDC converters. Figure 4a illustrates a conceptual valve structure comprising many submodules as minimal relevant building blocks or cells of a modular valve structure. Numerous valves connected in series/parallel form a multi-port converter. A simplified form of this converter is illustrated in Figure 4b.

Modular Converter

Modular Valve

Port 2

AC or DC

a) b)

Figure 4. Modular structure of a) valve and b) notional multi-port converter.

22 Defined at 18 C.F.R. § 388.113(c).

Port 3 AC or DC

Po rt

AC

o r D C

Po rt n

AC

o r D

C https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov http://opensource.org/osd

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23F

Category A project teams must complete, at a minimum, the following tasks during the course of their award. Applicants should closely review the Technical Performance Targets outlined in Section I.E as they relate to these items.

1. Propose the design of a new high-performance and high-power density valve with integrated protection (bypass), built-in redundancy, and high efficiency.

2. Propose new valve topologies suitable for high-voltage stacking and improved reliability.

3. Design proper valve terminations and bushings. Propose electric field management and design of corona shields to the standardized Basic Insulation Level for the valve to operate in a 525 kVdc converter station.

4. Design solutions using innovative insulation mediums and employing non-greenhouse gases, liquids, or solids that can improve valve power density and thermal management while meeting the NOFO’s high-voltage insulation requirements.

5. Propose a distributed auxiliary submodule and/or valve power supply that can operate reliably at the high system voltages targeted by this NOFO.

6. Propose all other relevant valve- and/or submodule-level auxiliary circuits applicable to the proposed design (control, pre-charge, discharge, protection, sensors, gate-drivers, etc.).

7. Propose reliable thermal management solutions that can satisfy the requirements of this NOFO.

8. Develop and build functional valve prototypes. Perform experimental validation at nominal power, voltage, and current using a pump-back setup to show the performance targets under this NOFO are met or exceeded. Propose a plan to test the capabilities of the valve.

9. Develop high-fidelity (electro-magnetic transient) valve models, validated with hardware, using commercial real-time simulation platforms (Power and/or Control Hardware-In-the-Loop (P-HIL / C-HIL)).

10. Show how the proposed valve can be used for HVDC converter operation under the NOFO requirements by simulating various use cases including bypass operation and operation with loss of several submodules within the valve.

11. Evaluate the circularity and lifetime of the valve design. Perform Failure Mode and Effect Analysis (FMEA) to identify potential failure points in the valve and categorize failure modes based on their likelihood and impact on the system, such as thermal stress, dielectric breakdown, etc.

12. Use relevant industry guidelines and standards as guidance (such as IEEE 2800, IEC 60071, etc.).22F

23, 23F

13. Consider and evaluate a multi-vendor specification for the valve by providing a proposed new inter-operability standard or by providing proposed updates to an existing standard.

23 IEEE standard for interconnection and interoperability of inverter-based resources (ibrs) interconnecting with Associated Transmission Electric Power Systems, n.d. https://doi.org/10.1109/ieeestd.2022.9762253.

24 “IEC 60071-11:2022.” International Electrotechnical Commission. Accessed October 27, 2024.

https://webstore.iec.ch/en/publication/66648.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://doi.org/10.1109/ieeestd.2022.9762253 https://webstore.iec.ch/en/publication/66648

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2. CATEGORY B – NEW MT-HVDC CONVERTER STATION DESIGN

There are two Sub-Categories under Category B – B1: MT-HVDC Converter Station Design and B2: Auxiliary Components for MT-HVDC Stations.

Sub-Category B1: MT-HVDC Converter Station Design

Applicants to this sub-category will propose converter technologies, topologies and systems for MT- HVDC stations that will operate in an HVDC macrogrid. Applicants are expected to propose innovative and meaningful MT-HVDC stations that meet the targets in Section I.E and would enable an HVDC macrogrid operating in conjunction with existing HVAC networks. As part ofthe project, it is required to simulate the enhanced performance and operation modes of a three-terminal converter station in an existing HVAC network as shown in Figure 2.

Sub-Category B1 project teams must complete, at a minimum, the following tasks during the course of their award:

1. Propose the design of a high performance, MT-HVDC multi-port converter station, associated protection, thermal cooling equipment, and control systems for a MT- HVDC grid.

2. Propose new converter station topologies that include galvanic isolation in the AC/DC conversion section.

3. Include AC and DC switchgear to integrate the station into a MT-HVDC macrogrid. AC and DC switchgear must be part of the converter station design with consideration given to availability, footprint, volume, and cost.

4. Propose multi-vendor interconnection and interoperability standards for the three-terminal converter station.

5. Develop high-fidelity EMT converter models for a full three-terminal station, using commercially available real-time simulation platforms. The model should be used to evaluate the MT-HVDC macrogrid system and show the system-level integration and operation per requirements outlined in Section I.E.

6. Show converter station compliance with the most recent version of IEEE-2800, through C-HIL modeling.

7. Simulate grid-forming and grid-following operation of the three-terminal station on an existing HVAC network validated in a C-HIL platform under nominal and faulted conditions to confirm system-level operation and coordination.

Sub-Category B2: Auxiliary Components for MT-HVDC Stations

Applicants to this sub-category will propose and experimentally validate technologies for advancements in auxiliary components for MT-HVDC stations (e.g., DC breakers, transformers, filters, disconnects, cable splicing and/or bushings, station or system-level control platforms, cooling systems).

https://arpa-e.energy.gov/faqs

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24F 25F

Sub-Category B2 project teams must complete, at a minimum, the following tasks during the course of their award:

1. Comply or show a pathway to future compliance with IEC 60071 and IEEE-2800-2022 as well as standards relevant to the proposed technologies such as IEEE Std C57 for transformers or IEEE Std C37 for breakers.23,24, 24F

25, 25F

2. Design, build, and test functional prototype(s) relevant to the proposed auxiliary component(s). Show a detailed plan how testing will be performed.

3. Develop high-fidelity electro-magnetic transient component models, validated with hardware, using commercial real-time simulation platforms (P-HIL and/or C-HIL) to evaluate the proposed concept on a system level.

4. Consider and evaluate the circularity and lifetime of proposed station design.

Perform FMEA to identify potential failure points in the station, including its cooling system. Use relevant industry guidelines and standards as guidance.

5. Build on international best-practices and experience with DC macrogrids.

E. TECHNICAL PERFORMANCE TARGETS

The technical performance targets for both categories under this NOFO are shown below in Tables 1 and 2. Each metric is designated with an ID (e.g., MA1, MB2).

Table 1. Technical performance targets for Category A.

ID Metric Name Target Value Details of Targeted Metrics

MA1

Nominal valve voltage rating

≥ 30 kV Consider actual operating voltage for HVDC converter (± 525 kVdc)

MA2

Nominal valve current rating

≥ 2 kiloampere (kA) Actual operating DC current measured in each valve leg

MA3

Power density ≥ 100% higher than

SOA

Based on MMC topology SOA Describe/justify selected SOA

MA4

Internal submodule bypass protection reaction time

< 10 microseconds (µs)

Includes sensing, digital (or analog) processing, and reaction time within the valve system For both fail-open and fail-closed conditions

25 2022 IEEE Power, distribution & regulating transformers. Institute of Electrical and Electronics Engineers. Accessed October 29, 2024. https://standards.ieee.org/wp-content/uploads/import/documents/tocs/powerdistribution.pdf.

26 IEEE Power Switchgear, circuits & fuses. Institute of Electrical and Electronics Engineers. Accessed October 29, 2024.

https://standards.ieee.org/wp-content/uploads/import/documents/tocs/switchcircfuses.pdf.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://standards.ieee.org/wp-content/uploads/import/documents/tocs/powerdistribution.pdf https://standards.ieee.org/wp-content/uploads/import/documents/tocs/switchcircfuses.pdf

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MA5

Partial discharge

< 10 picocoulomb (pC) @ 30 kV

Maximum partial discharge within a valve Capacitors and power devices can be removed/excluded for these tests

MA6 Efficiency > 99.5% Valve efficiency measured in pump-back operation

MA7 Valve internal redundancy Minimum N-2 Losing at least two submodules in a valve and still operating at full valve voltage

MA8 Number of valves operating in series > 15 (for ± 525 kVdc)

Verify through hybrid power and control hardware in the loop https://arpa-e.energy.gov/faqs

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Table 2. Technical performance targets for Category B.

B1: MT-HVDC Converter Station

ID Metric Name Target Value Details of Targeted Metrics

MB1 Station DC voltage rating ≥ ± 525 kV Bipole design, 3-port multi-terminal converter station with metallic return

MB2 Power rating ≥ 4,000 MW Based on 3-port, multi-terminal converter station design

MB3

Bypass reaction time

< 5 milliseconds (ms)

Transition to monopole operation and protection…