DE-FOA-0003331 Solar Technologies’ Rapid Integration and Validation for Energy Systems (STRIVES).pdf

Template Version November 2023

EERE T 540.117-01: Funding Opportunity Announcement

U.S. Department of Energy (DOE)

Office of Energy Efficiency and Renewable Energy (EERE)

Solar Technologies’ Rapid Integration and Validation for Energy Systems (STRIVES)

Funding Opportunity Announcement (FOA) Number: DE-FOA-0003331

FOA Type: Initial Assistance Listing Number: 81.087

FOA Issue Date: 5/28/2024 Informational Webinar: 6/10/2024 1 p.m. ET Submission Deadline for Concept Papers: 7/25/2024 5 p.m. ET Submission Deadline for Full Applications: 10/17/2024 5 p.m. ET Expected Submission Deadline for Replies to Reviewer Comments: 11/18/2024 5 p.m. ET Expected Date for EERE Selection Notifications: February 2025 Expected Timeframe for Award Negotiations: March–June 2025

• Applicants must submit a Concept Paper by 5:00 p.m. ET on the due date listed above to be eligible to submit a Full Application.

• To apply to this FOA, applicants must register with and submit application materials through EERE eXCHANGE at https://eere-eXCHANGE.energy.gov, EERE’s online application portal.

• Applicants must designate primary and backup points-of-contact in EERE eXCHANGE with whom EERE will communicate to conduct award negotiations. If an application is selected for award negotiations, it is not a commitment to issue an award. It is imperative that the applicant/selectee be responsive during award negotiations and meet negotiation deadlines. Failure to do so may result in cancelation of further award negotiations and rescission of the selection.

• Unique Entity Identifier (UEI) and System for Award Management (SAM) - Each applicant (unless the applicant is excepted from those requirements under 2 CFR 25.110) is required to: (1) register in the SAM at https://www.sam.gov before submitting an application; (2) provide a valid UEI number in the application; and (3) maintain an active SAM registration with current information when the applicant has an active federal award or an application or plan under consideration by a federal awarding agency. DOE may not make a federal award to an applicant until the applicant has complied with all applicable UEI and SAM requirements and, if an applicant has not fully https://eere-exchange.energy.gov/ https://www.sam.gov/

Questions about this FOA? Email SETO.STRIVES.FOA@EE.DOE.GOV. Problems with EERE Exchange?

Email EERE-ExchangeSupport@hq.doe.gov Include FOA name and number in subject line.

complied with the requirements by the time DOE is ready to make a federal award, DOE will determine that the applicant is not qualified to receive a federal award and use that determination as a basis for making a federal award to another applicant.

NOTE: Due to the high number of UEI requests and SAM registrations, entity legal business name and address validations are taking longer than expected to process.

Entities should start the UEI and SAM registration process as soon as possible. If entities have technical difficulties with the UEI validation or SAM registration process they should use the HELP feature on SAM.gov. SAM.gov will address service tickets in the order in which they are received and asks that entities not create multiple service tickets for the same request or technical issue. Additional entity validation resources can be found here: GSAFSD Tier 0 Knowledge Base - Validating your Entity.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://sam.gov/content/help https://sam.gov/content/home https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1 i

Table of Contents

Table of Contents ................................................................................................................................................ i

I. Funding Opportunity Description

A. Background and Context

i. Background and Purpose

ii. Technology Space and Strategic Goals

iii. Teaming Partner List

B. Topic Areas C. Applications Specifically Not of Interest D. Diversity, Equity, and Inclusion E. Authorizing Statutes

II. Award Information

A. Award Overview

i. Estimated Funding

ii. Period of Performance

iii. New Applications Only

B. EERE Funding Agreements

i. Cooperative Agreements

ii. Funding Agreements with Federally Funded Research and Development Center (FFRDCs)

III. Eligibility Information

A. Eligible Applicants

i. Domestic Entities

ii. Foreign Entities

B. Cost Sharing

i. Legal Responsibility

ii. Cost Share Allocation

iii. Cost Share Types and Allowability

iv. Cost Share Contributions by FFRDCs

v. Cost Share Verification

vi. Cost Share Payment

C. Compliance Criteria D. Responsiveness Criteria E. Other Eligibility Requirements

i. Requirements for DOE/NNSA FFRDCs Listed as the Applicant

ii. Requirements for DOE/NNSA and Non-DOE/NNSA FFRDCs Included as a Subrecipient

F. Limitation on Number of Concept Papers and Full Applications Eligible for Review G. Questions Regarding Eligibility

IV. Application and Submission Information

A. Application Process

i. Additional Information on EERE eXCHANGE

B. Application Forms C. Content and Form of the Concept Paper D. Content and Form of the Full Application

i. Full Application Content Requirements

ii. SF-424: Application for Federal Assistance

iii. Technical Volume mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov ii

iv. Resumes

v. Letters of Commitment

vi. Statement of Project Objectives (SOPO)

vii. Diversity, Equity, and Inclusion Plan

viii. Budget Justification Workbook

ix. Summary for Public Release

x. Summary Slide

xi. Subrecipient Budget Justification (if applicable)

xii. Budget for DOE/NNSA FFRDC (if applicable)

xiii. Authorization for Non-DOE/NNSA or DOE/NNSA FFRDCs (if applicable)

xiv. SF-LLL: Disclosure of Lobbying Activities

xv. Waiver Requests (if applicable)

xvi. Current and Pending Support

xvii. Locations of Work

xviii. Transparency of Foreign Connections

xix. Potentially Duplicative Funding Notice

E. Content and Form of Replies to Reviewer Comments F. Post Selection Information Requests G. Unique Entity Identifier (UEI) and System for Award Management (SAM) H. Submission Dates and Times I. Intergovernmental Review J. Funding Restrictions

i. Allowable Costs

ii. Pre-Award Costs

iii. Performance of Work in the United States (Foreign Work Waiver)

iv. Construction

v. Foreign Travel

vi. Equipment and Supplies

vii. Build America Buy America Requirements for Infrastructure Projects

viii. Lobbying

ix. Risk Assessment

x. Invoice Review and Approval

xii. Affirmative Action and Pay Transparency Requirements

xiii. Foreign Collaboration Considerations

V. Application Review Information

A. Technical Review Criteria

i. Concept Papers

ii. Full Applications

iii. Criteria for Replies to Reviewer Comments

B. Standards for Application Evaluation C. Other Selection Factors

i. Program Policy Factors D. Evaluation and Selection Process

i. Overview

ii. Pre-Selection Interviews

iii. Pre-Selection Clarification

iv. Recipient Responsibility and Qualifications

v. Selection

E. Anticipated Notice of Selection and Award Negotiation Dates

VI. Award Administration Information iii

A. Award Notices

i. Ineligible Submissions

ii. Concept Paper Notifications

iii. Full Application Notifications

iv. Applicants Selected for Award Negotiations

v. Alternate Selection Determinations

vi. Unsuccessful Applicants

B. Administrative and National Policy Requirements

i. Registration Requirements

ii. Award Administrative Requirements

iii. Foreign National Participation

iv. Subaward and Executive Reporting

v. National Policy Requirements

vi. Environmental Review in Accordance with National Environmental Policy Act (NEPA)

vii. Flood Resilience

viii. Applicant Representations and Certifications

ix. Statement of Federal Stewardship

x. Statement of Substantial

xi. Subject Invention Utilization Reporting

xii. Intellectual Property Provisions

xiii. Reporting

xiv. Go/No-Go Review

xv. Conference Spending

xvi. Uniform Commercial Code (UCC) Financing Statements

xvii. Real Property and Equipment

xviii. Implementation of Executive Order 13798, Promoting Free Speech and Religious Liberty

xix. Participants and Collaborating Organizations

xx. Current and Pending Support

xxi. U.S. Manufacturing Commitments

xxii. Interim Conflict of Interest Policy for Financial Assistance

xxiii. Data Management Plan

xxiv. Fraud, Waste, and Abuse

xxv. Human Subjects Research

VII. Questions/Agency Contacts

VIII. Other Information

A. FOA Modifications B. Government Right to Reject or Negotiate C. Commitment of Public Funds D. Treatment of Application Information E. Evaluation and Administration by Non-Federal Personnel F. Notice Regarding Eligible/Ineligible Activities G. Notice of Right to Conduct a Review of Financial Capability H. Requirement for Full and Complete Disclosure I. Retention of Submissions J. Title to Subject Inventions K. Government Rights in Subject Inventions L. Rights in Technical Data M. Copyright N. Export Control O. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment P. Personally Identifiable Information (PII) iv

Q. Annual Independent Audits R. Informational Webinar (Optional)

Appendix A – Cost Share Information

Appendix B – Sample Cost Share Calculation for Blended Cost Share Percentage

Appendix C – Waiver Requests For: 1. Foreign Entity Participation; and 2. Foreign Work

Appendix D – Required Use of American Iron, Steel, Manufactured Products, and Construction Materials Buy America Requirements for Infrastructure Projects

Appendix F – Definition of Technology Readiness Levels

Appendix G – List of Acronyms

I. Funding Opportunity Description

A. Background and Context

i. Background and Purpose This funding opportunity announcement (FOA) is being issued by the U.S.

Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) Solar Energy Technologies Office (SETO). Building a clean and equitable energy economy and addressing the climate crisis is a top priority of the Biden Administration. This FOA will advance the Biden Administration’s goals to achieve carbon pollution-free electricity by 2035 and to “deliver an equitable, clean energy future, and put the United States on a path to achieve net-zero emissions economy-wide by no later than 2050”1 to the benefit of all Americans.

DOE is committed to pushing the frontiers of science and engineering, catalyzing clean energy jobs through research, development, demonstration, and deployment (RDD&D), and ensuring environmental justice and inclusion of underserved communities.

The research, development, and demonstration (RD&D) activities to be funded under this FOA will support the government-wide approach to the climate crisis by driving innovation that can lead to the deployment of clean energy technologies, which are critical for climate protection. Specifically, SETO’s Rapid Integration and Validation for Energy Systems (STRIVES) FOA will fund RD&D projects to improve power systems simulation software tools and demonstrate new business models for distribution systems operations to integrate and optimize the value of inverter-based resources (IBRs) and distributed energy resources (DERs), including solar, wind, energy storage, and other technologies such as buildings and electric vehicles (EVs).2 This FOA is part of a collaborative effort announced in a Notice of Intent released by EERE to issue multiple FOAs totaling over $100 million for field demonstration projects and other research to support better planning and operations of the electric grid.3

In September 2021, DOE released the Solar Futures Study,4 which provides a vision for solar power’s role in cost-effectively contributing to the nation’s decarbonization goals. According to the Solar Futures Study, solar power will need to grow from supplying over 5% of U.S. electricity demand in 2023 to 40%

1 Executive Order 14008. January 27, 2021. “Tackling the Climate Crisis at Home and Abroad.”

2 North American Electric Reliability Corporation (NERC). June 2023. “An Introduction to Inverter-Based Resources on the Bulk Power System.” www.nerc.com/pa/Documents/2023_NERC_Guide_Inverter-Based-Resources.pdf.

3 EERE. EERE Wide Joint Notice of Intent for Field Validation. www.energy.gov/eere/eere-wide-joint-notice-intent-field-validation?auHash=tCYsv9_xguTLWOrI2HRJ_3xYCKmGafprPKFM_GIq9kc.

4 SETO. Solar Futures Study. www.energy.gov/eere/solar/solar-futures-study.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://www.nerc.com/pa/Documents/2023_NERC_Guide_Inverter-Based-Resources.pdf https://www.energy.gov/eere/eere-wide-joint-notice-intent-field-validation?auHash=tCYsv9_xguTLWOrI2HRJ_3xYCKmGafprPKFM_GIq9kc https://www.energy.gov/eere/eere-wide-joint-notice-intent-field-validation?auHash=tCYsv9_xguTLWOrI2HRJ_3xYCKmGafprPKFM_GIq9kc https://www.energy.gov/eere/solar/solar-futures-study by 2035. This will require the United States to install an average of 30 gigawatts alternating current5 (GWac) of solar generation capacity each year between now and 2025 and ramp up to 60 GWac per year from 2025 to 2030. With supportive policies, electrification, and aggressive cost reductions, solar installations in the United States could supply 1 terawatt (TWac) of generating capacity for the power grid by 2035 and 1.6 TWac of capacity by 2050.

The 2022 Inflation Reduction Act (IRA) provides federal tax incentives for solar deployment and domestic solar manufacturing that significantly support SETO’s mission. These include extension of a tax credit that can be claimed for solar installations and a new tax credit for solar component manufacturing in the United States.6 DOE estimates that the IRA tax credits will expand the deployment of solar energy and help reduce carbon emissions to 40% below 2005 levels by 2030.7

Achieving this vision requires that the solar industry achieve SETO’s 2030 cost reduction targets. In many parts of the country, solar electricity is already the lowest-cost form of new electricity generation capacity, but solar electricity is not yet cost-effective everywhere. There are multiple pathways to achieve these goals, but all require sustained innovation across solar and other DER technologies.

5 Power grid capacity values are described in watts of alternating current (ac). Photovoltaic modules (panels) and the rated power of systems that use them are described in watts of direct current (dc). The ratio of dc watts to ac watts is called the “inverter loading ratio,” which is typically in the range of 1.3 ± 0.2.

6 SETO. August 2023. Federal Solar Tax Credits for Businesses. www.energy.gov/eere/solar/federal-solar-tax-credits-businesses.

7 DOE Office of Policy. August 18, 2022. “DOE Projects Monumental Emissions Reduction From Inflation Reduction Act.” www.energy.gov/articles/doe-projects-monumental-emissions-reduction-inflation-reduction-act.

Figure 1. Illustration of how the mix of energy sources in the United States will need to change to meet the 2050 grid decarbonization goals mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses https://www.energy.gov/articles/doe-projects-monumental-emissions-reduction-inflation-reduction-act

ii. Technology Space and Strategic Goals

SETO works to enable the safe, reliable, secure, and cost-effective integration of solar energy to the nation’s electricity grid through RD&D activities. These activities, shown in Figure 2, address the key technical challenges in power system planning and operations, solar forecasting and variability management, control optimization, system protection and stabilities, energy storage integration, power electronics, real-time situational awareness, and cybersecurity.8 Collaboration with other DOE program offices, such as the Wind Energy Technologies Office (WETO), the Office of Electricity (OE), the Building Technologies Office, the Office of Cybersecurity, Energy Security, and Emergency Response, and the Vehicle Technologies Office, is essential to develop these technological advances.

Figure 2. SETO systems integration

The rapid deployment of IBRs, such as solar and wind plants and battery energy storage systems (BESS), have presented new challenges for power system planning and operations.9 IBRs rely on a piece of equipment known as an inverter to convert the direct current electrical energy that they produce or store into alternating current that is compatible with the electrical grid.10 SETO has funded research to mitigate these challenges, increasing the confidence of grid planners and operators in solar energy generation.

8 SETO. Systems Integration. www.energy.gov/eere/solar/systems-integration.

9 NERC. 2023. “Quick Reference Guide: Inverter-Based Resource Activities.”

www.nerc.com/pa/Documents/IBR_Quick%20Reference%20Guide.pdf.

10 SETO. Solar Integration: Inverters and Grid Services Basics. www.energy.gov/eere/solar/solar-integration-inverters-and-grid-services-basics.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov http://www.energy.gov/eere/solar/systems-integration https://www.nerc.com/pa/Documents/IBR_Quick%20Reference%20Guide.pdf https://www.energy.gov/eere/solar/solar-integration-inverters-and-grid-services-basics https://www.energy.gov/eere/solar/solar-integration-inverters-and-grid-services-basics

These efforts are focused on the development of hardware and software tools that will enable the widespread deployment and rapid integration of solar plus storage into the transmission and distribution (T&D) systems.11, 12, 13, 14 The transmission system is the high-voltage system used to move large amounts of power between regions, while the low-voltage distribution system delivers power to consumers. These tools include sensors and communications technologies to increase real-time situational awareness and visibility of the impact of solar generation on the T&D system, which enables system operators to make optimal decisions.15, 16 Other research efforts have focused on the operations of power systems during weather and human-made extreme events, including physical or cyberattacks, to enhance grid security and resilience, using solar photovoltaics (PV), energy storage, and other DERs.17, 18

The large-scale deployment of IBRs and other DERs, such as electric vehicles/electric vehicle supply equipment (EV/EVSE), buildings, and other clean energy technologies, is changing the characteristics of power grid operations.

Traditional operations of power systems are based on a centralized approach where electricity is generated in one location and transmission lines carry the power flow to the distribution system and then to the users. With the introduction of IBRs, the traditional centralized power grid is transitioning to a more decentralized and distributed grid that will require coordination of large numbers of diverse and geographically dispersed IBRs, DERs, and other clean energy technologies. Furthermore, utility-scale PV systems, microgrids, rooftop PV systems, and commercial and industrial solar energy systems generate different amounts of electricity at variable times. Coordinating the operations of these assets is crucial to ensure alignment of supply with demand and maintain grid reliability.

11 SETO. Solar Research and Development Funding Programs. www.energy.gov/eere/solar/solar-research-and-development-funding-programs.

12 SETO. Sustainable and Holistic Integration of Energy Storage and Solar PV (SHINES).

www.energy.gov/eere/solar/sustainable-and-holistic-integration-energy-storage-and-solar-pv-shines.

13 SETO. Funding Notice: Operation and Planning Tools for Inverter-Based Resource Management and Availability for Future Power Systems (OPTIMA). www.energy.gov/eere/solar/articles/funding-notice-operation-and-planning-tools-inverter-based-resource-management.

14 SETO. Enabling Extreme Real-time Grid Integration of Solar Energy (ENERGISE).

www.energy.gov/eere/solar/enabling-extreme-real-time-grid-integration-solar-energy-energise.

15 SETO. Advanced Systems Integration for Solar Technologies (ASSIST): Situational Awareness and Resilient Solutions for Critical Infrastructure. www.energy.gov/eere/solar/advanced-systems-integration-solar-technologies-assist-situational-awareness-and.

16 SETO. Solar and Wind Grid Services and Reliability Demonstration Funding Program.

www.energy.gov/eere/solar/solar-and-wind-grid-services-and-reliability-demonstration-funding-program.

17 SETO. Renewables Advancing Community Energy Resilience (RACER) Funding Program.

www.energy.gov/eere/solar/renewables-advancing-community-energy-resilience-racer-funding-program.

18 SETO. Solar Integration: Distributed Energy Resources and Microgrids. www.energy.gov/eere/solar/solar-integration-distributed-energy-resources-and-microgrids.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://www.energy.gov/eere/solar/solar-research-and-development-funding-programs https://www.energy.gov/eere/solar/solar-research-and-development-funding-programs https://www.energy.gov/eere/solar/sustainable-and-holistic-integration-energy-storage-and-solar-pv-shines https://www.energy.gov/eere/solar/articles/funding-notice-operation-and-planning-tools-inverter-based-resource-management https://www.energy.gov/eere/solar/articles/funding-notice-operation-and-planning-tools-inverter-based-resource-management https://www.energy.gov/eere/solar/enabling-extreme-real-time-grid-integration-solar-energy-energise https://www.energy.gov/eere/solar/advanced-systems-integration-solar-technologies-assist-situational-awareness-and https://www.energy.gov/eere/solar/advanced-systems-integration-solar-technologies-assist-situational-awareness-and https://www.energy.gov/eere/solar/solar-and-wind-grid-services-and-reliability-demonstration-funding-program https://www.energy.gov/eere/solar/renewables-advancing-community-energy-resilience-racer-funding-program http://www.energy.gov/eere/solar/solar-integration-distributed-energy-resources-and-microgrids http://www.energy.gov/eere/solar/solar-integration-distributed-energy-resources-and-microgrids

The transition to a digitally controlled, decentralized, and distributed grid will require novel methods for grid operations. These methods will take into consideration multiparty ownership and management of thousands of digitally controlled assets such as IBRs and DERs, including smart EV charging and home and building energy management systems. Furthermore, new operation methods are needed to ensure reliability and security at the device, plant, and system levels for T&D grids.

Beyond technical and operational challenges, the clean energy transition is also introducing new stakeholders who have not traditionally played a role in electricity generation, transmission, and distribution. These new stakeholders include non-utility DER asset owners and operators of different solar installations, such as community microgrids, aggregators, and virtual power plants (VPPs).19 The role of the end customer will be vital as they adopt and actively manage more clean energy technologies. Involvement of these nontraditional stakeholders is creating opportunities for new distribution systems operator (DSO) models to provide equitable access and participation in electricity markets.20

Projects funded under this FOA will develop software tools to accurately represent solar IBRs to increase confidence in modeling of power systems. In addition, projects will experiment with design, implementation, and field demonstration of novel DSO models that consider technology development and demonstration as well as the roles and responsibilities of nontraditional stakeholders in potential distribution electricity services and markets.

Projects funded under this FOA will address near-term and long-term challenges in operating electric power grids with large deployments of solar energy systems and other DERs. This FOA has two topic areas:

Topic 1: Robust Experimentation and Advanced Learning for DSOs. This topic will fund the development and demonstration of DSO models and supporting technologies to enable fast, resilient, secure, and equitable integration and operation of distributed solar PV and energy storage while maximizing their value. The DSO models will also consider other distributed energy technologies, such as community microgrids, VPPs for residential, commercial, and industrial customers, EVs, and energy-efficient building and demand-side management services. The technical, market, and grid services requirements defined for the developed DSO models will be validated through rigorous field demonstrations.

19 DOE. Virtual Power Plants. www.energy.gov/lpo/virtual-power-plants.

20 Federal Energy Regulatory Commission (FERC). September 2020. “FERC Order No. 2222: Fact Sheet.”

ferc.gov/media/ferc-order-no-2222-fact-sheet.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://www.energy.gov/lpo/virtual-power-plants https://ferc.gov/media/ferc-order-no-2222-fact-sheet

Topic 2: Improved Simulation Tools for Large-Scale IBR Transient and Dynamic Studies. This topic is co-funded by SETO and EERE’s Wind Energy Technologies Office (WETO). The topic will support the development of software tools and methodologies to improve the ability of power system engineers to study power systems dynamics accurately and efficiently in a system with large numbers of IBRs that are geographically dispersed.

Successful projects in both topics of this FOA will bring together diverse teams of research and development partners from:

Universities and national laboratories Industry partners, such as original equipment manufacturers and software vendors Electric industry stakeholders, such as T&D utilities and independent system operators (ISOs) New electricity service stakeholders, such as DER owners, operators, and aggregators End-use stakeholders, such as local communities and individual customers.

Industry partners should work with researchers throughout the technology development phases to ensure practical designs are used and to create prototypes that are viable for commercialization and broad adoption. Project teams should include active participation by electric utilities to ensure that solutions are developed to aid the grid planners and operators and to accelerate their adoption and use. Project teams should also actively involve nontraditional generator owners and operators as well as end-use communities and customers to make sure the developed technologies and business models are meeting their needs.

iii. Teaming Partner List

DOE is compiling a Teaming Partner List to facilitate the formation of project teams for this FOA. The Teaming Partner List allows organizations that may wish to participate on a project to express their interest to other applicants and explore potential partnerships.

The Teaming Partner List will be available on EERE eXCHANGE and will be regularly updated to reflect new teaming partners who provide their organization’s information.

SUBMISSION INSTRUCTIONS: View the Teaming Partner List by visiting the EERE eXCHANGE homepage and clicking on “Teaming Partners” within the left-hand navigation pane. This page allows users to view published Teaming Partner Lists.

To join the Teaming Partner List, submit a request within eXCHANGE. Select the appropriate Teaming Partner List from the drop-down menu and fill in the following information: Investigator Name, Organization Name, Organization Type, Topic Area, Background and Capabilities, Website, Contact Address, Contact Email, and Contact Phone.

DISCLAIMER: By submitting a request to be included on the Teaming Partner List, the requesting organization consents to the publication of the above-referenced information. By facilitating the Teaming Partner List, DOE is not endorsing, sponsoring, or otherwise evaluating the qualifications of the individuals and organizations that are identifying themselves for placement on this Teaming Partner List. DOE will not pay for the provision of any information, nor will it compensate any applicants or requesting organizations for the development of such information.

B. Topic Areas

i. Topic Area 1: Robust Experimentation and Advanced Learning for Distribution System Operators

Topic Objectives

This topic will fund the development and demonstration of DSO models and supporting technologies to enable fast, resilient, secure, and equitable integration and operation of distributed solar PV and energy storage and maximize the value of these assets. Project teams will address the technical and market opportunities and challenges associated with the adoption of DSO models considering the characteristics of IBRs and DERs in distribution systems and their efficient operations to provide system-wide services. The projects under this topic will also develop and demonstrate technologies to transform distribution systems operations, such as sensors, data analytics, communications technologies support, and distribution management software, including cybersecurity requirements, standards, and practices.

Projects funded under this topic will describe the system architecture and functions of the proposed DSO model and changes in distribution systems planning and operations, including those that are typically provided by traditional regulated distribution utilities. These planning and operations processes will be expanded to incorporate new functions that would enable grid services provided by aggregated and distributed behind-the-meter solar generation and energy storage located on the sub-transmission and distribution networks while minimizing solar curtailment.

In addition, DSO models will enable the management of “systems of systems” such as aggregation of community and merchant microgrids. It is envisioned that the projects will also investigate the viability of the integration of non-traditional participants, such as nonprofit or third-party for-profit organizations, and inform investments required for grid infrastructure upgrades. Under this topic, projects should also include the pathways for the evolution of existing regulated utilities. As such, the evaluations will be conducted with distribution utilities operating as potential DSOs and deploying the tools, business models, and grid management strategies of a DSO.

Furthermore, DSO models developed under this topic should consider solar generation assets located in underserved communities and facilitate their participation in electricity markets, whenever possible.

Background and Context

The increased deployment of different types of solar-plus-storage systems opens the door for new stakeholders to participate in power generation and electricity markets. The clean energy transition creates opportunities for exploration, experimentation, adoption, and deployment of DSO models.21, 22, 23, 24, 25, 26, 27, 28

In this FOA, a DSO model builds on a market-based platform to facilitate the efficient deployment and operations of distributed generation resources, including distributed solar PV and energy storage. A DSO would control the dispatch of energy from DERs into the electricity system within a distribution area to achieve one or more system-level objectives. Ideally, a DSO would facilitate market-based compensation of distribution grid services. This would allow customers with distributed solar energy resources and other controllable DER assets to monetize their grid value while providing more options and transparency for grid operators to

21 Energy KnowledgeBase. Distribution system operator (DSO). energyknowledgebase.com/topics/distribution-system-operator.asp.

22 Iberdrola. DSO (Distribution System Operator). www.iberdrola.com/innovation/distribution-system-operation.

23 International Renewable Energy Agency (IRENA). 2019. “Future Role of Distribution System Operators:

Innovation Landscape Brief.” www.irena.org/- /media/Files/IRENA/Agency/Publication/2019/Feb/IRENA_Landscape_Future_DSOs_2019.pdf.

24 Black & Veatch. “Distribution System Operator (DSO) Models for Utility Stakeholders.”

www.bv.com/perspectives/organizational-models-digital-distributed-modern-grid/.

25 Kristov, L. August 2022. “DSO 101: Designing and Comparing DSO Models.” gridworks.org/wp-content/uploads/2022/08/Kristov_DSO101_8.23.22.pptx.pdf.

26 Gridworks. March 2022.“Evaluating Alternative Distribution System Operator Models for California.”

gridworks.org/wp-content/uploads/2022/03/Evaluating-Alternative-DSO-Models-for-California.docx.pdf.

27 Euroelectric. December 2020. “Distribution Grids in Europe.” cdn.eurelectric.org/media/5089/dso-facts-and-figures-11122020-compressed-2020-030-0721-01-e-h-6BF237D8.pdf.

28 Southern California Edison. Integrated Distributed Energy Resources Partnership Pilot.

https://www.sce.com/business/savings-incentives/integrated-distributed-energy-resources-partnership-pilot.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://energyknowledgebase.com/topics/distribution-system-operator.asp https://energyknowledgebase.com/topics/distribution-system-operator.asp https://www.iberdrola.com/innovation/distribution-system-operation https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Feb/IRENA_Landscape_Future_DSOs_2019.pdf https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Feb/IRENA_Landscape_Future_DSOs_2019.pdf https://www.bv.com/perspectives/organizational-models-digital-distributed-modern-grid/ https://gridworks.org/wp-content/uploads/2022/08/Kristov_DSO101_8.23.22.pptx.pdf https://gridworks.org/wp-content/uploads/2022/08/Kristov_DSO101_8.23.22.pptx.pdf https://gridworks.org/wp-content/uploads/2022/03/Evaluating-Alternative-DSO-Models-for-California.docx.pdf https://cdn.eurelectric.org/media/5089/dso-facts-and-figures-11122020-compressed-2020-030-0721-01-e-h-6BF237D8.pdf https://cdn.eurelectric.org/media/5089/dso-facts-and-figures-11122020-compressed-2020-030-0721-01-e-h-6BF237D8.pdf https://www.sce.com/business/savings-incentives/integrated-distributed-energy-resources-partnership-pilot ensure reliability.29 In this FOA document, “DSO” will also be used to refer to similar roles, such as distribution network operators, distribution service providers, and energy service companies.30, 31, 32

Unlike traditional distribution systems, a digitally controlled, decentralized, distributed, and decarbonized grid must reliably operate under highly variable generation conditions. Furthermore, this modern grid must withstand extreme weather events and cyber threats.33 In addition, non-traditional stakeholders such as community microgrid operators, distribution-level aggregators, and other organizations have increasing capabilities to participate in electricity markets.

Traditional business models for distribution systems are not able to address many of these new challenges. New or existing DSO models could enhance the reliability and resilience of the distribution system, provide grid services, and unlock the value of ubiquitous DERs. These DSO models could also facilitate equitable participation of non-traditional stakeholders, such as VPPS and community microgrids, operating in disadvantaged communities.34, 35

Historically, distribution utilities are regulated entities. However, since the start of the deregulation in the 1980s, there have been some attempts (such as in California, New York, and Texas) to bring competition to the retail function of distribution utilities.36, 37, 38 The rapid deployment of distribution-level solar-plus-storage, in

29 California Public Utilities Commission. 2020. “Appendix B: An Overview of Distribution System Operator Models.”

docs.cpuc.ca.gov/PublishedDocs/Published/G000/M386/K856/386856808.pdf.

30 Anaya, K. L., and M. G. Pollitt. November 2015. “The Role of Distribution Network Operators in Promoting Cost- Effective Distributed Generation: Lessons from the United States of America for Europe.” Renewable and Sustainable Energy Reviews, Vol. 15. doi.org/10.1016/j.rser.2015.05.046.

31 Ross, S. C., et al. 2019. “Coordination between an Aggregator and Distribution Operator to Achieve Network- Aware Load Control.” 2019 IEEE PowerTech. doi.org/10.1109/PTC.2019.8810635.

32 Just, L., and H. Wetzel. “Distributed Generation and Cost Efficiency of German Electricity Distribution Network Operators.” Institute of Energy Economics at the University of Cologne (EWI).

www.econstor.eu/bitstream/10419/240957/1/EWI-WP-20-09.pdf.

33 DOE. October 2022. “Cybersecurity Considerations for Distributed Energy Resources on the U.S. Electric Grid.”

www.energy.gov/sites/default/files/2022- 10/Cybersecurity%20Considerations%20for%20Distributed%20Energy%20Resources%20on%20the%20U.S.%20Ele ctric%20Grid.pdf.

34 Loutan, C., et al. 2017. “Demonstration of Essential Reliability Services by a 300-MW Solar Photovoltaic Power Plant.” NREL. www.nrel.gov/docs/fy17osti/67799.pdf.

35 DOE. Justice40 Initiative. www.energy.gov/justice/justice40-initiative.

36 California Public Utilities Commission. Direct Access. www.cpuc.ca.gov/consumer-support/consumer-programs-and-services/electrical-energy-and-energy-efficiency/community-choice-aggregation-and-direct-access-/direct-access.

37 Bade, G. May 2016. “New York PSC Enacts New Revenue Models for Utilities in REV Proceeding.” Utility Dive.

www.utilitydive.com/news/new-york-psc-enacts-new-revenue-models-for-utilities-in-rev-proceeding/419596/.

38 Electric Choice. February 2021. “The Ultimate Guide to Texas Electricity Deregulation.”

www.electricchoice.com/blog/guide-texas-electricity-deregulation.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M386/K856/386856808.pdf https://doi.org/10.1016/j.rser.2015.05.046 https://doi.org/10.1109/PTC.2019.8810635 https://www.econstor.eu/bitstream/10419/240957/1/EWI-WP-20-09.pdf https://www.energy.gov/sites/default/files/2022-10/Cybersecurity%20Considerations%20for%20Distributed%20Energy%20Resources%20on%20the%20U.S.%20Electric%20Grid.pdf https://www.energy.gov/sites/default/files/2022-10/Cybersecurity%20Considerations%20for%20Distributed%20Energy%20Resources%20on%20the%20U.S.%20Electric%20Grid.pdf https://www.energy.gov/sites/default/files/2022-10/Cybersecurity%20Considerations%20for%20Distributed%20Energy%20Resources%20on%20the%20U.S.%20Electric%20Grid.pdf https://www.nrel.gov/docs/fy17osti/67799.pdf https://www.energy.gov/justice/justice40-initiative https://www.cpuc.ca.gov/consumer-support/consumer-programs-and-services/electrical-energy-and-energy-efficiency/community-choice-aggregation-and-direct-access-/direct-access https://www.cpuc.ca.gov/consumer-support/consumer-programs-and-services/electrical-energy-and-energy-efficiency/community-choice-aggregation-and-direct-access-/direct-access https://www.cpuc.ca.gov/consumer-support/consumer-programs-and-services/electrical-energy-and-energy-efficiency/community-choice-aggregation-and-direct-access-/direct-access https://www.utilitydive.com/news/new-york-psc-enacts-new-revenue-models-for-utilities-in-rev-proceeding/419596/ https://www.electricchoice.com/blog/guide-texas-electricity-deregulation addition to other DERs, offers a new opportunity to experiment with DSO models through hardware-in-the-loop testing, technoeconomic and community benefits analysis, and field demonstrations. More research is needed to ensure DSO models would be technically, economically, and equitably viable for different regions of the United States with different electric power market regulations.

DSO models have also been adopted in different parts of the world.39, 40 The design of these models is different depending on the countries and regions. A common trait of these DSO models is the interaction between operational technology (OT) and information technology (IT) from several organizations and entities that the model supports. The IT/OT interactions support critical functions for multiple stakeholders such as, but not limited to:

• Wholesale electricity providers and/or an ISO

• Distribution network, wires, and equipment owners

• DER owners and/or aggregators

• Merchant microgrid and VPP operators

• Consumers

• Market-based consumer services and products.26, 32, 41

For this FOA topic, a generic DSO model is illustrated in Figure 3. The organizations and functions shown in the figure are not meant to be all-inclusive or prescriptive.

The figure shows critical layers and entities that should be considered in new DSO models, which serve as the platforms to provide electricity services and to balance the generation and load in distribution systems. In addition, software and hardware technologies, communications technologies, and cybersecurity are needed for the DSO models to be effectively implemented in different regions of the United States based on the local regulatory and organizational requirements and constraints.

Roles and responsibilities for each entity must be determined and assigned to manage DERs for their robust dispatch and operation. DSO models should support reliability and resilience through grid services by DERs, including but not limited to voltage and frequency support, and islanding, including re-energization or black-start strategies. In addition, DSO models should enable financial market products to incentivize distribution network services, upgrades, and maintenance.

It is expected that the implemented DSO models should utilize several layers of control, information, and operational technologies and provide services to several

39 Seetalabs. June 2023. “Energy Transition with Distribution System Operators in Europe.” seetalabs.com/asset-management-strategies-of-european-distribution-system-operators/.

40 Lyons, C., and J. Pang. “Decarbonization and RIIO in the United Kingdom.” Scott Madden Management Consultants. www.scottmadden.com/insight/decarbonization-riio-united-kingdom/.

41 Clean Coalition. Distribution System Operator (DSO): A New Model Whose Time Has Come for Modernizing Our Energy System. clean-coalition.org/distribution-system-operator-dso.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://seetalabs.com/asset-management-strategies-of-european-distribution-system-operators/ https://seetalabs.com/asset-management-strategies-of-european-distribution-system-operators/ https://www.scottmadden.com/insight/decarbonization-riio-united-kingdom/ https://clean-coalition.org/distribution-system-operator-dso types of customers on distribution networks.42 These may include industrial, commercial, and residential customers. The DSO functions are expected to include, but not be limited to, fast monitoring and control of active distributed solar energy sources, energy storage, and other DERs. In addition, projects under this topic will demonstrate the integration of conventional operational and information technologies with new technologies.

Figure 3. Generic DSO model illustration

Emerging Challenges and Problem Statement

Distribution network planning and operations have historically been performed by utilities as part of traditional grid functions. The planning and operating procedures must be modified for system-wide control and optimized coordination of IBRs and DERs. These modifications will support increasing distributed energy generation as well as capacity, the majority of which is solar PV plus battery energy storage, and the introduction of enhanced inverter control functions for reliability and resilience as well as economic operations.43, 44, 45 Additionally, these modifications should consider grid services utilizing DER and solar capacity.34 Furthermore, increasing

42 Taft, J. D. November 2016. “Comparative Architecture Analysis: Using Laminar Structure to Unify Multiple Grid Architectures.” DOE. gridarchitecture.pnnl.gov/media/advanced/Comparative%20Architecture%20Analysis- Final.pdf.

43 Pacific Gas and Electric. October 2018. “Enabling Smart Inverters for Distribution Grid Services.”

www.pge.com/content/dam/pge/docs/about/corporate-responsibility-and-sustainability/PGE-EPIC-Project-2.03A- Joint-IOU-SI-White-Paper.pdf.

44 Stenclik, D., et al. 2017. “Maintaining Balance: The Increasing Role of Energy Storage for Renewable Integration.”

IEEE Power and Energy Magazine, vol. 15, no. 6. ieeexplore.ieee.org/document/8070540.

45 PNNL. Grid Architecture: Advanced Concepts. DOE. gridarchitecture.pnnl.gov/advanced-concepts.aspx.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://gridarchitecture.pnnl.gov/media/advanced/Comparative%20Architecture%20Analysis-Final.pdf https://gridarchitecture.pnnl.gov/media/advanced/Comparative%20Architecture%20Analysis-Final.pdf http://www.pge.com/content/dam/pge/docs/about/corporate-responsibility-and-sustainability/PGE-EPIC-Project-2.03A-Joint-IOU-SI-White-Paper.pdf http://www.pge.com/content/dam/pge/docs/about/corporate-responsibility-and-sustainability/PGE-EPIC-Project-2.03A-Joint-IOU-SI-White-Paper.pdf https://ieeexplore.ieee.org/document/8070540 https://gridarchitecture.pnnl.gov/advanced-concepts.aspx curtailment of solar and wind has been reported recently.46 DSOs’ integrated planning and operation practices can help minimize these curtailments.32 DSO models will be able to expand on and complement the traditional distribution planning and operation process to increase deployment of IBRs and DERs. Other concepts, such as flexible interconnection requirements and dynamic hosting capacity for solar PV, as opposed to today’s prevalent “firm” interconnection requirements and static hosting capacity planning, can be adopted by DSOs to encourage higher penetration of rooftop PV and other DERs.

DSO models typically include planning and operations procedures in addition to requirements that can be more efficiently performed and met by utilizing existing electricity market products.47 There are wholesale market products already in place for ISOs, which DSOs may use as baselines for DERs. The grid services supplied by DERs would be utilized to improve the reliability and resilience of the grid, reduce the cost of energy, and ease the planning and maintenance of the grid. These new DSO models must enable the use of different types of DER technologies and consider effects on adjacent or co-located systems or customers. These new models will need to provide more active load balancing to enable greater incorporation of new loads from buildings, industry, and transportation due to decarbonization. The competitive market structure and financial products offered for distribution networks through developed DSO models would facilitate and incentivize merchant microgrid and VPP operators, which could potentially contribute to resilience and equity in underserved communities.48, 49, 50 New DSO models will support mitigating adverse transient events seen at sub-transmission and distribution systems levels due to aggregated amounts of distributed solar.51 These events could lead to voltage and frequency stability problems and gaps in situational awareness. In addition, to mitigate adverse impacts to the system, models should provide grid congestion management in regions where distribution utilities have new deployment of solar.52

46 Kamwa, I., et al. 2024. “Taming Wind and Solar Resources: Smart Inverters are Key [Editor’s Voice].” IEEE Power and Energy Magazine, vol. 22, no. 2. ieeexplore.ieee.org/document/10444643/figures#figures.

47 Klingel, J., and S. McCafferty. “The Business of Electricity: Will Distribution Markets Dominate?” Black & Veatch.

www.bv.com/perspectives/business-electricity-will-distribution-markets-dominate/.

48 Gregus, N. April 2022. “How to Leverage Commercial Microgrids.” Energy Link. goenergylink.com/blog/how-to-leverage-commercial-microgrids/.

49 Ton, D. T., and M. A. Smith. 2012. “The U.S. Department of Energy’s Microgrid Initiative.” The Electricity Journal.

www.energy.gov/sites/prod/files/2016/06/f32/The%20US%20Department%20of%20Energy's%20Microgrid%20Ini tiative.pdf.

50 Enchanted Rock. Reinventing Electrical Resiliency for the Retail and Distribution Industries.

enchantedrock.com/grocery-and-distribution/#:~:text=A%20microgrid%20can%20support%20a,offset%20microgrid%20cost%20of%20ownership.

51 NERC. April 2022. “Multiple Solar PV Disturbances in CAISO.”

www.nerc.com/pa/rrm/ea/Documents/NERC_2021_California_Solar_PV_Disturbances_Report.pdf.

52 Ghazvini, M. A. F., et al. March 2019. “Congestion Management in Active Distribution Networks through Demand Response Implementation.” Sustainable Energy, Grids, and Networks, Vol. 17.

www.sciencedirect.com/science/article/pii/S2352467718300699.

mailto:SETO.STRIVES.FOA@EE.DOE.GOV mailto:EERE-ExchangeSupport@hq.doe.gov https://ieeexplore.ieee.org/document/10444643/figures#figures https://www.bv.com/perspectives/business-electricity-will-distribution-markets-dominate/ https://goenergylink.com/blog/how-to-leverage-commercial-microgrids/ https://goenergylink.com/blog/how-to-leverage-commercial-microgrids/ https://www.energy.gov/sites/prod/files/2016/06/f32/The%20US%20Department%20of%20Energy's%20Microgrid%20Initiative.pdf https://www.energy.gov/sites/prod/files/2016/06/f32/The%20US%20Department%20of%20Energy's%20Microgrid%20Initiative.pdf https://enchantedrock.com/grocery-and-distribution/#:%7E:text=A%20microgrid%20can%20support%20a,offset%20microgrid%20cost%20of%20ownership https://enchantedrock.com/grocery-and-distribution/#:%7E:text=A%20microgrid%20can%20support%20a,offset%20microgrid%20cost%20of%20ownership https://www.nerc.com/pa/rrm/ea/Documents/NERC_2021_California_Solar_PV_Disturbances_Report.pdf https://www.sciencedirect.com/science/article/pii/S2352467718300699

DSO models will support coherent orchestration and management of several hundred devices capable of generating electricity and participating in the distribution electricity market. Smart home management systems could handle devices within residences and lessen the burden of the smart technologies required at the aggregation point.