DE-FOA-0003346_GTO_Geothermal_Resources'_Value_in_Implementing_Decarbonization.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)

Geothermal Technologies Office Geothermal Resources’ Value in Implementing Decarbonization

(GTO GRID)

Funding Opportunity Announcement (FOA) Number: DE-FOA-0003346 FOA Type: Initial

Assistance Listing Number: 81.087

FOA Issue Date: June 12th, 2024

Informational Webinar: June 26th, 2024

Submission Deadline for Letter of Intent: July 24th, 2024 5:00 p.m. ET

Submission Deadline for Full Applications: September 9th, 2024, 5:00 p.m. ET

Expected Date for EERE Selection Notifications: December 12th, 2024

Expected Timeframe for Award Negotiations: January - February 2025

• Applicants must submit a Letter of Intent 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 https://eere-exchange.energy.gov/ https://www.sam.gov/

Questions about this FOA? Email Value.of.Geothermal@ee.doe.gov Problems with EERE Exchange? Email EERE-ExchangeSupport@hq.doe.gov Include FOA name and number in subject line.

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 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:Value.of.Geothermal@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 subject line.

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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 Area 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 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 Letter of Intent D. Content and Form of the Full Application

i. Full Application Content Requirements

ii. SF-424: Application for Federal Assistance https://usdoe.sharepoint.com/sites/GeothermalTechnologiesOfficeGTO-DataModelingandAnalysis/Shared%20Documents/Data,%20Modeling,%20and%20Analysis/02_Funding%20Initiatives/FY24%20GRID%20FOA/FOA%20Documents/003%20FOA%20Document/Value.of.Geothermal@ee.doe.gov file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov ii

iii. Technical Volume

iv. Resumes

v. Letters of Commitment

vi. Statement of Project Objectives (SOPO)

vii. Diversity, Equity, and Inclusion (DEI) 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. Post Selection Information Requests F. Unique Entity Identifier (UEI) and System for Award Management (SAM) G. Submission Dates and Times H. Intergovernmental Review I. 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. Lobbying

viii. Risk Assessment

ix. Invoice Review and Approval

xi. Affirmative Action and Pay Transparency Requirements

xii. Foreign Collaboration Considerations

V. Application Review Information

A. Technical Review Criteria

i. Full Applications

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

A. Award Notices

i. Ineligible Submissions https://usdoe.sharepoint.com/sites/GeothermalTechnologiesOfficeGTO-DataModelingandAnalysis/Shared%20Documents/Data,%20Modeling,%20and%20Analysis/02_Funding%20Initiatives/FY24%20GRID%20FOA/FOA%20Documents/003%20FOA%20Document/Value.of.Geothermal@ee.doe.gov file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov iii

ii. Full Application Notifications

iii. Applicants Selected for Award Negotiations

iv. Alternate Selection Determinations

v. 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. Applicant Representations and Certifications

viii. Statement of Federal Stewardship

ix. Statement of Substantial Involvement

x. Subject Invention Utilization Reporting

xi. Intellectual Property Provisions

xii. Reporting

xiii. Conference Spending

xiv. Uniform Commercial Code (UCC) Financing Statements

xv. Real Property and Equipment

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

xvii. Participants and Collaborating Organizations

xviii. Current and Pending Support

xix. U.S. Manufacturing Commitments

xx. Interim Conflict of Interest Policy for Financial Assistance

xxi. Fraud, Waste, and Abuse

xxii. 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) Q. Annual Independent Audits R. Informational Webinar

Appendix A – Cost Share Information

Appendix B – Sample Cost Share Calculation for Blended Cost Share Percentage https://usdoe.sharepoint.com/sites/GeothermalTechnologiesOfficeGTO-DataModelingandAnalysis/Shared%20Documents/Data,%20Modeling,%20and%20Analysis/02_Funding%20Initiatives/FY24%20GRID%20FOA/FOA%20Documents/003%20FOA%20Document/Value.of.Geothermal@ee.doe.gov file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov iv

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

Appendix D – List of Acronyms/Initialisms https://usdoe.sharepoint.com/sites/GeothermalTechnologiesOfficeGTO-DataModelingandAnalysis/Shared%20Documents/Data,%20Modeling,%20and%20Analysis/02_Funding%20Initiatives/FY24%20GRID%20FOA/FOA%20Documents/003%20FOA%20Document/Value.of.Geothermal@ee.doe.gov file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

Questions about this FOA? Email Value.of.Geothermal@ee.doe.gov .

I. Funding Opportunity Description

A. Background and Context

i. Background and Purpose

This Funding Opportunity Announcement (FOA) entitled “Geothermal Resources’ value in Implementing Decarbonization” (GRID) is issued by the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) Geothermal Technologies Office (GTO).

GTO’s mission is to increase geothermal energy deployment through research, development, and demonstration (RD&D) of innovative technologies that enhance exploration and production. Its vision is a vibrant domestic geothermal sector that contributes to a carbon-pollution free electric sector by 2035 and a net-zero emission economy by 2050 while providing economic opportunities and environmental benefits for all Americans. GTO supports geothermal energy RD&D activities in six research areas aimed at increased access, reduced costs and improved economics, and improved education and outreach about geothermal resources.1 DOE’s 2023 Enhanced Geothermal ShotTM analysis concludes that with aggressive technology improvements in areas relevant to enhanced geothermal systems (EGS), geothermal electricity generation could provide 90 GWe of firm, flexible power to the US electric grid by 2050.2

Building a clean and equitable energy economy and addressing the climate crisis is a top priority of the Biden-Harris Administration. This FOA will advance the Biden-Harris 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“3 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.

Geothermal power offers a unique value proposition to support the United States’ target of 100% carbon-pollution-free electricity by 2035 and a net-zero emissions economy by 2050. Traditionally, geothermal power is well understood

1 DOE Geothermal Technologies Office. 2022. "Fiscal Years 2022-2026 Multi-Year Program Plan."

https://www.energy.gov/eere/geothermal/articles/geothermal-technologies-office-multi-year-program-plan-fy- 2022-2026 2 Augustine, C., S. Fisher, J. Ho, I. Warren, and E. Witter. 2023. "Enhanced Geothermal Shot Analysis for the Geothermal Technologies Office." https://www.osti.gov/biblio/1922621 3 Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad,” January 27, 2021.

mailto:Value.of.Geothermal@ee.doe.gov file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/ as a clean, firm generation resource with a high capacity factor, 24/7 availability, and minimal land use footprint. Moreover, the advent of flexible geothermal operations and geothermal power coupled with storage technologies broadens the breadth of services that geothermal power could provide to a decarbonizing grid.

This FOA supports the administration goals laid out above by catalyzing regional grid modeling studies that quantify the potential contribution of geothermal power in supporting an equitable4 transition to a future decarbonized grid and economy. The research and development (R&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, this FOA will quantify the value of geothermal power to a decarbonized grid.

ii. Technology Space and Strategic Goals GTO's Data, Modeling, and Analysis (DMA) Subprogram provides a critical supporting and enabling function toward advancing the entire GTO research portfolio. The goal of the DMA Subprogram is to identify and address barriers to geothermal adoption in the U.S. and validate and assess technical progress across the geothermal sector to inform the direction and prioritization of GTO RD&D.5 A primary technical objective of GTO’s DMA Subprogram is to accurately capture the value of geothermal energy resources in grid models and electricity market valuation1.

This FOA seeks applications to address the potential contribution of geothermal power in supporting an equitable transition to a future decarbonized grid.

Strategic goals for this FOA, highlighted below in Table 1, are derived from the GeoVision Roadmap and GTO Multi-Year Program Plan (MYPP).

4 Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” January 20, 2021.

5 DOE. 2024. DOE FY 2025 Budget Justification Vol 4. https://www.energy.gov/sites/default/files/2024-03/doe-fy- 2025-budget-vol-4-v5.pdf mailto:Value.of.Geothermal@ee.doe.gov file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/executive-order-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government/

Table 1: GTO GRID FOA Goals and Aligned GTO Goals

FOA Goals:

1) Understand current geothermal representation and identify forward-looking best practices to incorporate geothermal power in regional utility planning processes

2) Model system integration impacts of geothermal power (firm, flexible, and/or geothermal power + storage configurations) to specific regions of the US grid

3) Apply system-level metrics beyond LCOE to evaluate the role of geothermal power in a decarbonized grid

4) Quantify how geothermal power can support an equitable transition to grid decarbonization

5) Develop a one-page infographic visually and succinctly demonstrating individual project research outcomes

GeoVision Roadmap6 - Sub-action 3.1.1: Quantify the value that geothermal resources can provide to stakeholders.

- Sub-action 3.3.3: Develop and evaluate other innovative value streams for geothermal technologies.

GTO MYPP 20221 - Resource Maximization Goal 1: Increase geographic resolution of grid capacity, production cost, and other geothermal deployment analysis tools.

- Data, Modeling, and Analysis Subprogram Goal 1:

Complete a full assessment of the value of geothermal electricity to the grid, including ancillary services.

- Data, Modeling and Analysis Subprogram Contribution 1:

Collect, model, and analyze data that validates grid and additive value of geothermal power generation and hybridized systems.

- Data, Modeling and Analysis Subprogram Contribution 2:

Perform enabling data collection, modeling, and analysis that documents the critical role geothermal energy will have in driving down economy-wide carbon emissions while delivering economic and environmental justice in a deeply decarbonized future.

6 DOE Geothermal Technologies Office. 2019. “GeoVision: Harnessing the Heat Beneath Our Feet.”

https://www.energy.gov/sites/default/files/2019/06/f63/GeoVision-full-report-opt.pdf file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

GTO seeks applications from teams focused on geographic regions defined within specific power pools, joint utilities groups, utility service territories, or Tribal jurisdictions in the conterminous US, Alaska, Hawaii, or US territories. GTO is not seeking nationwide grid analyses, but rather a distribution of modeling studies representing different geographic regions within the US. Regional grid modeling studies should use one or more analysis approaches and tools such as capacity expansion modeling, production cost modeling, Loss-of-Load based analyses7, machine learning applications, and/or alternate modeling or market design approaches.

iii. Teaming Partner List DOE is compiling a Teaming Partner List to facilitate the formation of project teams for this FOA. Coordination with utility entities is encouraged in support of the FOA goals outlined in Table 1. 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.

7 EPRI. 2022. "Resource Adequacy for a Decarbonized Future: A Summary of Existing and Proposed Resource Adequacy Metrics." April. https://www.epri.com/research/programs/067417/results/3002023230.

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B. Topic Area

1. Value of Geothermal Power Topic Area Project teams are required to propose grid modeling and/or analysis approaches tailored to their specific grid region of interest examining one or more of the following geothermal power attributes:

a) Firm capacity to support resource adequacy

b) Flexible geothermal power and ancillary services a) to the grid and/or b) to a deferrable load

c) Integrated value of geothermal power with storage technologies

d) Total system impact of geothermal power to cost of grid decarbonization

In addition to choosing one or more of the above attributes for examination, project teams are required to incorporate elements of understanding geothermal power’s contribution to an equitable transition within the proposal.

Further description of attributes a-d as well as the required equitable transition incorporation are described in the remainder of this section. Table 2 at the end of this section describes alignment between FOA goals and desired project outcomes.

a) Firm capacity to support resource adequacy The increasing variable renewable energy (VRE) penetration to the grid, coupled with transmission planning lead times, mandates for the retirement of fossil and nuclear generation facilities in some regions of the United States, and projected growth in electricity demand, underscores the importance of clean, firm generation to support electricity reliability. DOE’s recent Pathways to Commercial Liftoff Report on Next-Generation Geothermal Power outlines a need for 700-900 Gigawatts (GW) of additional clean, firm capacity by 20508, and recent utility procurement mandates corroborate the requirement and market appetite for clean, firm generation technologies like geothermal power9.

8 DOE. 2024. "Pathways to Commercial Liftoff: Next-Generation Geothermal Power." DOE. March.

https://liftoff.energy.gov/wp-content/uploads/2024/03/LIFTOFF_DOE_NextGen_Geothermal_v14.pdf 9 CPUC. 2021. "CPUC Orders Historic Clean Energy Procurement to Ensure Electric Grid Reliability and Meet Climate Goals." California Public Utilities Commission. June 24.

https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M389/K478/389478892.PDF file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

As capacity markets evolve in parallel with increasing VRE penetration10, an emerging industry standard for comparison of an energy technology’s ability to serve load is Effective Load Carrying Capability (ELCC) or similar approximations for capacity accreditation11 12. These methods inform a load-serving entity of the incremental reliability improvement that a specific resource will contribute to the system to satisfy resource adequacy requirements relative to a perfect capacity firm generator. System reliability contributions of VREs and battery storage decrease with greater penetration of the respective resource due to saturation effects.13

Within the California Independent System Operator (CAISO) energy markets, the capacity credit for geothermal power is high (80-90%) as it is a firm resource with its capacity value exceeding that of stand-alone solar photovoltaics (PV) and wind. However, PV + storage maintains a capacity value advantage relative to geothermal, though this is projected to decline through 2026, and potentially beyond, with increased PV + storage market penetration.14

The reliability contribution of geothermal power is recognized as increasingly important at greater levels of grid decarbonization due to its high capacity credit.

b) Flexible geothermal power and ancillary services a) to the grid and/or b) to a deferrable load Significant VRE penetration is spurring reforms to energy and ancillary services markets with an aim to enhance operational flexibility to the grid. As the resource mix evolves to meet local, state, and federal decarbonization goals, observed changes in net demand (i.e., the aggregate load reduced by non-dispatchable VRE generation power output) are creating challenging conditions for grid operators such as steep net load ramps, evolving timing of load

10 NREL. 2022. "Influence of Hybridization on the Capacity Value of PV and Battery Resources." March.

https://www.nrel.gov/docs/fy22osti/75864.pdf 11 E3. 2021. "ELCC Concepts and Considerations for Implementation." August.

https://www.nyiso.com/documents/20142/24172725/NYISO%20ELCC_210820_August%2030%20Presentation.pdf 12 NYISO. 2022. "Capacity Accreditation: Implementation Details."

https://www.nyiso.com/documents/20142/34963268/4%20CA%20Capacity%20Accreditation%20pres.pdf/1364dd ad-b31f-4e6d-42c6-68504f69ea9c 13 Astrape Consulting and Energy + Environmental Economics. 2023. "Incremental ELCC Study for Mid-Term Reliability Procurement." January. https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/integrated-resource-plan-and-long-term-procurement-plan-irp-ltpp/20230210_irp_e3_astrape_updated_incremental_elcc_study.pdf 14 Bollinger, M., D. Millstein, W. Gorman, P. Dobson, and S. Jeong. 2023. "Mind the gap: Comparing the net value of geothermal, wind, solar, and solar+storage in the Western United States." February.

https://www.sciencedirect.com/science/article/pii/S0960148123001672?via%3Dihub file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov shedding, overgeneration, and negative locational marginal prices15. Power market operators increasingly seek to incentivize ancillary services products that can provide flexible, short-term ramp capability to meet changing system needs.16

Flexible operation of conventional geothermal power has been demonstrated at dry steam, flash, and binary cycle plants with capabilities including load following, frequency regulation, operational reserves, and black-start capability with rapid power ramp rates17 18 19 20. Differing operational strategies for flexible generation such as reducing output during negative pricing, setting ramping thresholds based on price signals, or curtailment during lowest-priced hours of the day have been modeled to increase energy value (i.e. plant revenue from energy sales on the wholesale market) by an order of 10%19. Next-generation geothermal power technologies such as Enhanced Geothermal Systems (EGS) may also be capable of flexible dispatch to provide peaking capacity services to the grid21. Additionally, opportunities for flexible geothermal power to serve deferrable loads such as mineral extraction processing, green hydrogen production, computational mining, or cloud computing may further enhance value.20 22

Contractual incentives in power purchase agreements such as availability payments can compensate for ancillary services of geothermal power20. While

15 Denholm, P., D. Arent, S. Baldwin, D. Bilello, G. Brinkman, J. Cochran, W. Cole, et al. 2021. "The challenges of achieving a 100% renewable electricity system in the United States."

https://www.sciencedirect.com/science/article/pii/S2542435121001513?via%3Dihub 16 FERC. 2021. "Energy and Ancillary Services Market Reforms to Address Changing System Needs." September.

https://www.ferc.gov/sites/default/files/2021-09/20210907- 4002_Energy%20and%20Ancillary%20Services%20Markets_2021_0.pdf 17 Warren, I., S. Porse, and J. Winick. 2021. "Geothermal Representation in Power System Models."

https://research-hub.nrel.gov/en/publications/geothermal-representation-in-power-system-models 18 Thomsen, P. 2022. "The Increasing Value of Geothermal in the West."

https://www.ormat.com/Warehouse/userUploadFiles/Image/Geothermal%20in%20the%20West%20239%20Tho msen.pdf 19 Millstein, D., P. Dobson, and S. Jeong. 2021. "The Potential to Improve the Value of U.S. Geothermal Electricity Through Flexible Operations." January.

https://asmedigitalcollection.asme.org/energyresources/article/143/1/010905/1089719/The-Potential-to- Improve-the-Value-of-U-S 20 Bhatnagar, D., H. Rabinowitz, D. Boff, G. Pennell, C. Holland, M. Weimar, B. Huang, D. Wu, and A. Bonneville.

2022. "Nontechnical Barriers to Geothermal Development." July.

https://www.pnnl.gov/main/publications/external/technical_reports/PNNL-32760.pdf 21 Ricks, W., K. Volker, J. Norbeck, and J. Jenkins. 2024. "The Role of Flexible Geothermal Power in Decarbonized Electricity Systems."

22 Goodman, D., P. Mirick, and K.D. Wilson. 2022. "Salton Sea Geothermal Development - Nontechnical Barriers to Entry - Analysis and Perspectives." https://www.pnnl.gov/publications/salton-sea-geothermal-development-nontechnical-barriers-entry-analysis-and file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov prior analysis has historically shown this to be a challenging market to capture for geothermal operators23, as electricity markets shift to increase renumeration for operational flexibility and firm capacity during intervals of net peak demand, such operational paradigms could be reconsidered.

The capability of geothermal power to operate flexibly may support grid operators in balancing across an evolving generation supply mix and customer load demand while enhancing energy value.

c) Integrated value of geothermal power with storage technologies Flexible geothermal power plants are capable of diurnal and seasonal storage durations with modeled round-trip storage efficiencies ranging from 59-93%21.

Geothermal power coupled with energy storage may allow for time-of-use operational strategies such as shifting power generation to high net load periods24 and/or energy storage charging depending on pricing signals from the grid (e.g., negative pricing episodes)19. Modeling studies examining flexible dispatch of geothermal power coupled with in-reservoir energy storage indicate potential improvements in energy value (i.e. average price of wholesale electricity per unit geothermal generation) up to 60% relative to a baseload geothermal power plant25. Further, integrating concentrating solar power (CSP) and thermal energy storage with geothermal power is modeled to increase geothermal plant output by 9% while reducing overall cost by 15% for a stand-alone CSP with thermal storage plant26.

Capacity benefits due to the system interaction of differing resource types, termed diversity impacts, have been shown for solar + 4-hr battery storage within the New York Independent System Operator (NYISO) to have a greater-than-additive reliability contribution, with an additional diversity benefit resulting from the combination of these resources.11 13

Hybridization of geothermal power with energy storage and/or VREs may bolster the cumulative diversity benefit while enhancing energy value.

23 Edmunds, T., and P. Sotorrio. 2015. "Ancillary Service Revenue Potential for Geothermal Generators in California." https://www.energy.gov/eere/geothermal/articles/ancillary-service-revenue-potential-geothermal-generators-california 24 Thomsen, P. 2021. "Geothermal in Western U.S. Resource Planning: A Review of Recent Results." GRC Transactions 45.

25 Ricks, W., J. Norbeck, and J. Jenkins. 2022. "The value of in-reservoir energy storage for flexible dispatch of geothermal power." Applied Energy 313.

26 McTigue, J., J. Castro, G. Mungas, N. Kramer, J. King, C. Turchi, and G. Zhu. 2018. "Hybridizing a geothermal power plant with concentrating solar power and thermal storage to increase power generation and dispatchability." https://www.osti.gov/servlets/purl/1462472 file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

d) Total system impact of geothermal power to cost of grid decarbonization.

The total system value of a generation resource relies upon not only the services that it can provide to the grid, but also the potential marginal economic value of alternative resource options that were avoided or displaced due to selection of the respective resource. Levelized cost of electricity (LCOE) does not capture a technology’s full economic value to the grid, neglecting ‘hidden’ system integration costs such as avoided transmission build-out, avoided emissions, avoided generation capacity, etc.8 42 41

A variety of previous studies have interrogated the role of geothermal power on a system-wide basis. A study conducted within CAISO indicates that for every 1 megawatt (MW) of baseload geothermal deployed in a capacity expansion model (CEM), up to 4.2 MW in combined PV + storage (4-6 hour battery capacity) was displaced, with total resource costs in 2030 reduced by up to $372 million. 24 A separate study modeled the impact of baseload geothermal energy to the southern California grid and found operational cost savings of up to $75 per every additional megawatt-hour (MWh) of geothermal generation, along with emissions and curtailment reduction benefits27.

As EGS resources begin to come online, the system fleet displacement has been shown to vary under different modeled scenarios (e.g., 100% decarbonization) as well as under different operational regimes (e.g. with and without reservoir storage). The system value of inflexible EGS is modeled to result from displacement of load-following natural gas plants with carbon capture and storage and baseload nuclear. In contrast, flexible EGS is found to displace zero-carbon fuel peaker plants and may also increase optimal solar penetration.21

Serving the last increment of load demand in a decarbonized grid, termed “the last 10%” challenge, will require building out a significant percentage of capacity (35-50%) with low utilization rates to meet a small fraction of the total load (the last 10%) while accounting for the vast majority of system costs (see Figure 1 below) 28. NREL’s 100% Clean Electricity by 2035 report found that generation technologies with firm capacity during peak demand periods could contribute to “the last 10%” of clean generation to a decarbonized grid, and particularly geothermal power due to its high capacity credit29.

27 The Center for Energy Efficiency and Renewable Technologies. 2016. "CEERT's Comments: The Value of Salton Sea Geothermal Development in California's Carbon Constrained Future." April.

https://efiling.energy.ca.gov/GetDocument.aspx?tn=211028&DocumentContentId=22897 28 Mai, T., P. Denholm, P. Brown, W. Cole, E. Hale, P. Lamers, C. Murphy, et al. 2022. "Getting to 100%: Six strategies for the challenging last 10%." https://www.sciencedirect.com/science/article/pii/S2542435122004056 29 Denholm, P., P. Brown, W. Cole, T. Mai, B. Sergi, M. Brown, P. Jadun, et al. 2022. "Examining Supply-Side Options to Achieve 100% Clean Electricity by 2035." https://www.nrel.gov/docs/fy22osti/81644.pdf file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

Figure 1 – Left image shows the fraction of capacity needed to meet load demand (A) and the marginal capacity factor (B) across a year. Right image demonstrates marginal CO2 emissions abatement costs with increasing grid decarbonization across capacity expansion modeling scenarios28.

However, selection of geothermal power on an earlier time horizon ‘first-in’ deployment basis, rather than as increments of firm generation to be added to a later-stage decarbonizing resource portfolio, may dramatically alter overall system costs and emissions impacts. As described in DOE’s Pathways to Commercial Liftoff report, aggressive deployment of flexible geothermal power could reduce the system-wide cost to decarbonize the grid by up to 25%8.

Providing a substantial role for geothermal power in near-term deployment of clean energy resources can maximize geothermal power’s system-wide benefits and bolster a pathway to successfully achieving a decarbonized grid and economy.

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Geothermal power’s role in an equitable transition to grid decarbonization Consistent and systematic fair, just, and impartial treatment of all individuals4 during the energy transition to a decarbonized grid is of paramount importance.

A recent white paper focused on incorporating equity in electric grid planning provides a model to categorize specific end outcomes and potential measurement strategies30. Geothermal power deployment may overlap many of these categories, potentially including health outcome improvements through pollution exposure reduction, retail electricity price impacts of system-wide decarbonization cost reduction, and enhancing grid stability to reduce outage frequency, among others.

As an example, growth in geothermal power deployment could play a role in reduction of air pollution (SO2, NOx, PM2.5) through firm and/or flexible capacity.

Peaking fossil power plants tend to emit air pollutants at a higher rate than baseload plants and due to siting are found to disproportionately impact low-income and racially diverse communities31. Further, electricity imports may cause health burdens and premature mortality rates at the source of generation not experienced by the end user32. Although the expectation in a decarbonized grid is elimination or mitigation of emissions, these health impacts remain prevalent during the energy transition.

Project teams can consider the role of geothermal power in an equitable transition through implementation of applicable equity metrics as outlined in the white paper30 previously referenced. Additionally, application of tools such as the Council on Environmental Quality’s (CEQ) Climate and Economic Justice Screening Tool33, Environmental Protection Agency’s (EPA) Environmental Justice Screening and Mapping (EJSCREEN) Tool34, the DOE’s Low-Income Energy Affordability Data (LEAD) Tool35, or alternate approaches could be applied.

Geothermal power may offer a variety of benefits and contributions to an equitable decarbonized electric grid.

30 Kazimierczuk, K., M.B. DeMenno, R.S. O'Neil, and B.J. Pierre. 2023. "Equitable Electric Grid: Defining, Measuring, and Integrating Equity into Electricity Sector Policy and Planning." September.

https://www.pnnl.gov/sites/default/files/media/file/MOD-Plan%20Equity%20Paper%20Final.pdf 31 Clean Energy Group. 2022. "The Peaker Problem." https://www.cleanegroup.org/wp-content/uploads/The- Peaker-Problem.pdf.

32 Hennessy, E., J. de Chalendar, S. Benson, and I. Axevedo. 2022. "Distributional health impacts of electricity imports in the United States." https://iopscience.iop.org/article/10.1088/1748-9326/ac6cfa/pdf 33 CEQ. n.d. "Climate and Economic Justice Screening Tool." Council on Environmental Quality.

https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5.

34 EPA. n.d. "Environmental Justice Screening and Mapping Tool." https://ejscreen.epa.gov/mapper/.

35 DOE. 2018. "Low-Income Energy Affordability Data Tool." https://data.openei.org/submissions/573.

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Applicants are required to address all FOA goals outlined in Table 2:

Table 2: GTO GRID FOA Goals and Desired Project Outcomes

FOA Goals Desired Project Outcomes

1 Understand current geothermal representation and identify forward-looking best practices to incorporate geothermal power in regional utility planning processes

- Synthesis of current geothermal power representation in the proposed region’s utility planning process - input assumptions, deployment forecasting, research gaps or data needs, limiting factors precluding deployment, etc.

- Develop best practices recommendations based on the project’s analysis results for how geothermal power representation in the proposed region’s utility planning process could be improved to support future geothermal power deployment

- Plans for dissemination of identified best practices recommendations for potential implementation in other utility territories

2 Model system integration impacts of geothermal power (firm, flexible, and/or geothermal power + storage configurations) to specific regions of the US grid

- Regional grid modeling study results (capacity expansion modeling, production cost modeling, Loss-of-Load based analyses36, machine learning applications, and/or alternate modeling or market design approaches) quantifying the value of geothermal power to a decarbonized grid

- Impact of an aggressive geothermal power deployment scenario is included, as applicable (e.g.

at a minimum, technology costs aligned with National Renewable Energy Laboratory (NREL) Annual Technology Baseline (ATB) Advanced case37 or assumptions based on the Enhanced Geothermal Shot analysis38)

36 EPRI. 2022. "Resource Adequacy for a Decarbonized Future: A Summary of Existing and Proposed Resource Adequacy Metrics." April. https://www.epri.com/research/programs/067417/results/3002023230.

37 NREL. 2023. "Annual Technology Baseline." https://atb.nrel.gov/electricity/2023/geothermal#UEAN6RGH 38 Augustine, C., S. Fisher, J. Ho, I. Warren, and E. Witter. 2023. "Enhanced Geothermal Shot Analysis for the Geothermal Technologies Office." https://www.osti.gov/biblio/1922621 file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

3 Apply system-level metrics beyond LCOE evaluate the role of geothermal power in a decarbonized grid

- Implementation of a novel or existing system-level metric beyond LCOE39 40 41 42 that captures the value of geothermal power to a decarbonized grid

4 Quantify how geothermal power can support an equitable transition to grid decarbonization

- Application of relevant equity metrics30 in analysis results to demonstrate the impact of geothermal power deployment on an equitable decarbonized grid

- Utilization of tools such as the Council on Environmental Quality’s (CEQ) Climate and Economic Justice Screening Tool (CEQ)43, Environmental Protection Agency’s (EPA) Environmental Justice Screening and Mapping (EJSCREEN) Tool44, the DOE’s Low-Income Energy Affordability Data (LEAD) Tool45, or alternate approaches

5 Develop a one-page infographic visually and succinctly demonstrating individual project research outcomes

- Project deliverables include infographic depicting project results (e.g. including graphical representations, Sankey diagram, etc.), raw images and the associated graphical input data that can potentially be used in future DOE branded products

All work under EERE funding agreements must be performed in the United States.

See Section IV.I.iii (Performance of Work in the United States (Foreign Work Waiver) and Appendix C.

C. Applications Specifically Not of Interest The following types of applications will be deemed nonresponsive and will not be reviewed or considered (See Section III.D., Responsiveness Criteria, of the FOA):

39 Energy Information Agency. 2023. "Levelized Costs of New Generation Resources in the Annual Energy Outlook."

April. https://www.eia.gov/outlooks/aeo/electricity_generation/pdf/LCOE_methodology.pdf 40 Ueckerdt, F., L. Hirth, G. Luderer, and O. Edenhofer. 2013. "System LCOE: What are the costs of variable renewables?" December.

https://www.sciencedirect.com/science/article/abs/pii/S0360544213009390?via%3Dihub 41 Mai, T., M. Mowers, and K. Eurek. 2021. "Competitiveness Metrics for Electricity System Technologies."

February. https://www.nrel.gov/docs/fy21osti/72549.pdf 42 Loth, E., C. Qin, J. Simpson, and K. Dykes. 2022. "Why we must move beyond LCOE for renewable energy design."

December. https://www.sciencedirect.com/science/article/pii/S2666792422000300#bib0016.

43 CEQ. n.d. "Climate and Economic Justice Screening Tool." Council on Environmental Quality.

https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5.

44 EPA. n.d. "Environmental Justice Screening and Mapping Tool." https://ejscreen.epa.gov/mapper/.

45 DOE. 2018. "Low-Income Energy Affordability Data Tool." https://data.openei.org/submissions/573.

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• Applications that fall outside the technical parameters specified in Sections I.A.

(Background and Context) and I.B. (Topic Area) of the FOA.

• Applications for modeling of geothermal heating and cooling technologies (including geothermal heat pumps, direct-use geothermal).

• Applications that propose individual project-scale modeling or individual project-scale technology proof of concept.

• Applications that propose national-scale grid modeling projects.

• Applications for proposed methods that are not based on sound scientific principles (e.g., violates the laws of thermodynamics).

D. Diversity, Equity, and Inclusion It is the policy of the Biden Administration that:

[T]he Federal Government should pursue a comprehensive approach to advancing equity46 for all, including people of color and others who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality. Affirmatively advancing equity, civil rights, racial justice, and equal opportunity is the responsibility of the whole of our government. Because advancing equity requires a systematic approach to embedding fairness in decision-making processes, executive departments, and agencies (agencies) must recognize and work to redress inequities in their policies and programs that serve as barriers to equal opportunity.

By advancing equity across the Federal Government, we can create opportunities for the improvement of communities that have been historically underserved, which benefits everyone.47

As part of this whole of government approach, this FOA seeks to encourage the participation of underserved communities48 and underrepresented groups.

46 The term “equity” means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

47 Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government” (Jan. 20, 2021).

48 The term “underserved communities” refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life, as exemplified by the list of in the definition of “equity.” E.O. 13985. For purposes of this FOA, as applicable to geographic communities, applicants can refer to economically distressed communities identified by the Internal Revenue Service as Qualified Opportunity Zones; communities identified as file:///C:/Users/ckouch/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4TEYU9I1/EERE-ExchangeSupport@hq.doe.gov

Applicants are highly encouraged to include individuals from groups historically underrepresented49,50 in STEM on their project teams. As part of the application, applicants are required to describe how diversity, equity, and inclusion objectives will be incorporated in the project. Specifically, applicants are required to submit a Diversity, Equity, and Inclusion Plan that describes the actions the applicant will take to foster a welcoming and inclusive environment, support people from underrepresented groups in STEM, advance equity, and encourage the inclusion of individuals from these groups in the project; and the extent the project activities will be located in or benefit underserved communities (See Section IV.D.vii, Diversity, Equity, and Inclusion (DEI) Plan). The plan should include at least one SMART (Specific, Measurable, Assignable, Realistic and Time-Related) milestone per budget period supported by metrics to measure the success of the proposed actions. This plan will be evaluated as part of the technical review process and incorporated into the award if selected.

Further, Minority Serving Institutions51, Minority Business Enterprises, Minority Owned Businesses, Woman Owned Businesses, Veteran Owned Businesses, or entities located in an underserved community that meet the eligibility requirements disadvantaged or underserved communities by their respective States; communities identified on the Index of Deep Disadvantage referenced at https://news.umich.edu/new-index-ranks-americas-100-most-disadvantaged-communities/, and communities that otherwise meet the definition of “underserved communities” stated above.

49 According to the National Science Foundation’s 2019 report titled, “Women, Minorities and Persons with Disabilities in Science and Engineering”, women, persons with disabilities, and underrepresented minority groups—blacks or African Americans, Hispanics or Latinos, and American Indians or Alaska Natives—are vastly underrepresented in the STEM (science, technology, engineering and math) fields that drive the energy sector.

That is, their representation in STEM education and STEM employment is smaller than their representation in the U.S. population. https://ncses.nsf.gov/pubs/nsf19304/digest/about-this-report For example, in the U.S., Hispanics, African Americans and American Indians or Alaska Natives make up 24 percent of the overall workforce, yet only account for 9 percent…