FundOpp_DE-FOA-0003641.pdf

Financial Assistance Notice of Funding Opportunity

Part 1

Department of Energy (DOE) Office of Electricity Grid Supply Chain Alternatives to Lead Energy Dominance

(SCALED)

Notice of Funding Opportunity Number: DE-FOA-0003641

Concept Paper Due: November 20, 2026, 5:00 PM E.T.

Application Due: February 8, 2027, 5:00 PM E.T.

Table of Contents

BEFORE YOU BEGIN

Navigating the Notice of Funding Opportunity

I. BASIC INFORMATION

A. Key Facts

1. Funding Details

2. Period of Performance

B. Executive Summary C. Teaming Partner List D. Agency Contact Information

II. ELIGIBILITY

A. Eligible Applicants

1. Domestic Entities

2. Foreign Entity Participation

3. Performance of Work in the United States

4. Ineligible Participants

B. Limitation on Number of Concept Papers and Applications Eligible for Review C. Cost Sharing

1. Cost Share Requirements

2. Unallowable Cost Share Sources

D. FFRDC Eligibility Criteria

1. DOE and Non-DOE FFRDCs as a Subrecipient

III. NOFO DESCRIPTION

A. Background and Context B. Program Purpose C. Program Goals and Objectives D. Expected Performance Goals E. Topic Areas

1. Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment

2. Topic Area 2: Alternative Materials and Subcomponents

F. Applications Specifically Not of Interest G. Statutory Authority

IV. APPLICATION CONTENT AND FORM

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A. Use and Disclosure of Application Information B. Summary C. Concept Paper Requirements D. Application Content Requirements

1. Covered Individual Definition, Designation, and Responsibility

2. Summary of Application Requirements

3. Letters of Commitment (Upstream Supply Chain Contributor)

4. Impacted Indian Tribes Documentation

5. Technical Volume

6. Biographical Sketch

7. Current and Pending (Other) Support

E. Additional Requirements

1. Buy America Preference for Infrastructure Projects

V. SUBMISSION REQUIREMENTS AND DEADLINES

A. Submission Date and Times B. Intergovernmental Review

VI. APPLICATION REVIEW INFORMATION

A. Standards for Application Evaluation B. Responsiveness Review C. Review Criteria

1. Compliance Criteria

2. Technical Review Criteria

D. Other Selection Factors

VII. SELECTION AND AWARD NOTICES

VIII. AWARD ADMINISTRATION INFORMATION

A. Post-Award Requirements and Administration

1. Government Rights in Data B. Helpful Websites

IX. OTHER INFORMATION

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Notice of Funding Opportunity, Part 1

Before You Begin Navigating the Notice of Funding Opportunity

To reduce the burden on applicants in the Notice of Funding Opportunity (NOFO) process and limit the length of the NOFO information requests, we separated the NOFO into two parts.

The NOFO Part 1 describes the Department of Energy (DOE) program goals and evaluation criteria, eligibility, and other components specific to each funding opportunity.

NOFO Part 2 includes the fixed DOE requirements that generally do not change from NOFO to NOFO, including standard information for the application phase, expectations for award negotiations, and post-award requirements. You must review both parts before applying. To assist you in the process, you will find references throughout this document to additional information in Part 2.

You must also take several one-time actions before applying. Some of these actions may take several weeks, so be sure to allow yourself enough time to complete them. If you don’t complete all required steps, it could interfere with application and negotiation deadlines or your ability to receive an award if selected. If you have already completed these one-time registrations, make sure they are active and up to date. All registrations are free. You can find additional information about registration in NOFO Part 2, Get Registered.

Hyperlinks are provided for the applicant’s ease of reference. Links, and the information contained in them, may change over time. It is up to an individual applicant to make sure that they have the current information that is contained in the links.

This announcement is published with NOFO Part 2 Version 4.1 (June 2026).

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I. Basic Information A. Key Facts Issuing Agency

Department of Energy, Office of Electricity

Funding Opportunity Title

Grid Supply Chain Alternatives to Lead Energy Dominance

(SCALED)

Announcement Version

Initial

Funding Opportunity Number

DE-FOA-0003641

Funding Instrument

Cooperative Agreements

Expected Total Available Funding

$237 million

Assistance Listing Number and Name

81.122 Office of Electricity

Announcement Type

Non-Research Demonstration

Funding Opportunity Description

To enhance the domestic supply chain for essential grid components.

Program Goals & Objectives

This initiative will deploy a multifaceted approach to bolster domestic capabilities to withstand supply chain shocks, ensure a reliable energy infrastructure, and position the U.S. as a global leader in foundational grid technologies.

Topic Areas

• Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment will support efforts to mitigate supply chain constraints by identifying opportunities (at a Technology

Readiness Level [TRL] 8 or higher) to reclaim components and materials from retired equipment from projects, storm damage, or end-of-life circumstances.

• Topic Area 2: Alternative Materials and Subcomponents will support U.S. suppliers and manufacturers in adopting existing (TRL 6 or higher) domestically sourced alternative materials and subcomponents to enhance the resilience of the U.S. energy grid supply chain.

Eligible Applicants Domestic Entities:

• Institutes of higher education;

• For-profit entities;

• Non-profit entities;

• State and local government entities; and

• Indian Tribes

See Section II. Eligibility for additional details.

KEY DATES

All deadlines are 5:00 p.m. ET unless indicated otherwise

Notice of Funding Opportunity Issue Date:

October 30, 2026

Concept Paper Deadline:

November 20, 2026

Application Deadline:

February 8, 2027

Anticipated Selection Notification Date:

June 25, 2027

Anticipated Award Date:

September 23, 2027

Estimated Period of Performance:

Topic Area One (1):

Oct. 2027 – Sept.

Topic Area Two (2):

Phase 1: Oct. 2027 – Sept. 2028

Phase 2: Oct. 2028 – Sept. 2031

Version 4.1 Page 6 of 51 eXCHANGE URL and Helpdesk https://exchange.energy.gov/ exchangehelp@hq.doe.gov

NOFO URL and NOFO Email https://exchange.energy.gov/Default.aspx/ DE-FOA-0003641@netl.doe.gov https://exchange.energy.gov/ mailto:exchangehelp@hq.doe.gov https://exchange.energy.gov/Default.aspx/ mailto:DE-FOA-0003641@netl.doe.gov

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1. Funding Details Multiple Topic Areas Approximate total available funding for all topic areas: $237,000,000 in fiscal year 2027

Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment

• Approximate total available funding: $50,000,000

• Approximate number of awards: 3–20

• Approximate dollar amount of individual awards: $2,500,000–$15,000,000

• Minimum cost share required: 50%

• Approximate award project period: up to 24 months

• Anticipated length of budget periods: up to 24 months

• Anticipated number of budget periods: 1

Topic Area 2: Alternative Materials and Subcomponents

• Approximate total available funding: $187,000,000

• Approximate number of awards: 7–50

• Approximate dollar amount of individual awards: $1,000,000–$25,000,000

• Minimum cost share required: 50%

• Approximate award project period: up to 48 months

• Anticipated number of budget periods: 1

• Anticipated length of budget periods: Phase 1—up to 12 months. Phase 2—up to 36 months

2. Period of Performance DOE anticipates both Topic Areas will be coextensive (singular budget period); however, Topic Area Two (2) will contain two Phases. For Topic Area 2, Phase 2 will be contingent on a Go/No-Go decision point. You can find a complete list of post-award requirements and more information on the Go/No-Go review in NOFO Part 2, Award Administration Information.

B. Executive Summary The Department of Energy (DOE), Office of Electricity (OE), is launching a strategic grid supply chain program, as appropriated in the Energy and Water Development and Related Agencies Appropriations Act, 2026 (Pub. L. No. 119-74, Div. B), designed to significantly enhance the domestic supply chain for critical electric grid components such as (but not limited

to) distribution transformers, larger power transformers, circuit breakers, switchgear, reclosers, insulators, busbars, and high-voltage bushings. This program seeks to (1) bolster domestic capabilities and capacity to handle supply chain shocks, (2) complement ongoing investments in domestic manufacturing capacity to meet increased equipment demands, and (3) strengthen supply chains for next-generation grid components that reduce demand for existing solutions and enable global dominance.

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To accomplish these goals, this program will implement a variety of initiatives to target different objectives that will foster a more secure, resilient, and competitive domestic manufacturing base for the electric grid.

This NOFO targets the manufacture of distribution and power transformers, their associated components and materials, and other essential electric grid equipment. It will deploy a dual-pronged approach to address critical needs facing the Nation as the grid is being upgraded and expanded to meet new loads. First, it seeks to promote greater refurbishment and reuse of transformers and other grid components. This approach offers a quicker turnaround and a more cost-effective solution compared with procuring entirely new components, supplementing available inventory to meet growing demand. Second, the initiative aims to fast-track the identification, qualification, and integration of domestically sourced alternative materials and subcomponents used by grid equipment manufacturers in the United States (U.S.). This push will accelerate the adoption of alternatives or innovative solutions that will reduce reliance on constrained or foreign-dominated inputs.

C. Teaming Partner List DOE is compiling a Teaming Partner List to help create project teams for this NOFO.

The Teaming Partner List allows organizations interested in participating on a project to express their interest to other applicants and explore potential partnerships.

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

SUBMISSION INSTRUCTIONS:

To view this NOFO’s Teaming Partner List, click “Teaming Partners” on the eXCHANGE homepage in the left-hand navigation pane. To join the Teaming Partner List:

• Click “Submit Entry to Teaming Partner List”

• Select the appropriate Teaming Partner List from the drop-down menu

• Fill in all required information: Investigator Name, Organization Name, Organization

Type, Topic Area, Background and Capabilities, Website, Contact Address, Contact Email, and Contact Phone

DISCLAIMER:

When you submit a request to be included on the Teaming Partner List, the requesting organization consents to publication of the registration information. By facilitating the Teaming Partner List, DOE is not endorsing, sponsoring, or otherwise evaluating the qualifications of the individuals and organizations that ask to be placed on the Teaming Partner List. DOE will not pay for any information you provide, nor will it compensate any applicants or request organizations for developing such information.

D. Agency Contact Information For questions relating to this NOFO, email us at DE-FOA-0003641@netl.doe.gov.

mailto:DE-FOA-0003641@netl.doe.gov

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II. Eligibility To be considered, your submission must meet the criteria set forth below. If your application does not meet these eligibility requirements, it will be removed from consideration for any award. DOE will not determine eligibility for potential applicants before the application due date. The information in this document is specific to this NOFO. You can find the eligibility requirements that apply to all NOFOs in NOFO Part 2, Eligibility.

A. Eligible Applicants DOE strongly encourages applicants to form teaming partnerships of multiple eligible entities. For Topic Area 1 (Refurbishment and Reuse of Critical Grid Equipment), partnerships could comprise any number of teaming utilities, grid component refurbishment facilities, other relevant private sector entities, and research institutions with complementary knowledge and expertise. For Topic Area 2 (Alternative Materials and Subcomponents), partnerships could comprise multiple innovators, technology developers, supply chain providers, grid equipment and component manufacturers, and others involved in the supply chain and manufacturing of grid components.

1. Domestic Entities The following types of domestic entities are eligible to participate as a recipient or subrecipient of this NOFO:

• Institutions of higher education (as defined in Title 20 U.S.C. § 1001)

• For-profit organizations

• Nonprofit organizations

• State and local government entities

• Indian Tribes (as defined in section 4 of the Indian Self-Determination and Education

Assistance Act, 25 U.S.C. § 5304)1 To qualify as a domestic entity, the entity must be legally formed in the U.S. and have a physical location for business operations in the U.S.

Participant Limitations

Participation of the following entities is limited as follows:

• Provided there is no conflict, DOE FFRDCs2 are eligible to apply for funding as a subrecipient but are not eligible to apply as a recipient.

1 “Indian Tribe,” as defined in section 4(e) of the Indian Self-Determination and

Education Assistance Act (25 U.S.C. § 5304), means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established according to the Alaska Native Claims Settlement Act (85 Stat. 688) [43 U.S.C. § 1601, et seq.], is eligible for the special programs and services provided by the U.S. to Indians because of their status as Indians.

2 FFRDCs are federally funded research and development centers that conduct research for the U.S. Government. You can find a list of FFRDCs at https://ncses.nsf.gov/resource/master-gov-lists-ffrdc.

https://uscode.house.gov/view.xhtml?req=granuleid:USC-2010-title20-section1001&num=0&edition=2010 https://uscode.house.gov/view.xhtml?req=(title:25%20section:5304%20edition:prelim) https://uscode.house.gov/statutes/pl/92/203.pdf#:%7E:text=688%20PUBLIC%20LAW%2092-203-DEC.%2018%2C%201971%20%5B85%20STAT.,and%20for%20other%20purposes.%20Alaska%20Native%20Claims%20Settlement https://uscode.house.gov/view.xhtml?req=(title:43%20section:1601%20edition:prelim) https://ncses.nsf.gov/resource/master-gov-lists-ffrdc

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• Non-DOE FFRDCs are eligible to participate as a subrecipient but are not eligible to apply as a recipient.

• Federal agencies and instrumentalities (other than DOE) are eligible to participate as a subrecipient but are not eligible to apply as a recipient.

• The National Energy Technology Laboratory is ineligible to apply as a recipient or subrecipient.

2. Foreign Entity Participation In general, foreign entities are not eligible to apply as either a recipient or subrecipient.

In limited circumstances, we may approve a waiver to allow a foreign entity to participate as a recipient or subrecipient.

A foreign entity may apply to this NOFO, but the application must be accompanied by an explicit written waiver request. Likewise, if you want to include a foreign entity as a subrecipient, you must submit a separate explicit written waiver request in your application for each proposed foreign subrecipient. NOFO Part 2, Application Content Requirements, explains the requirements for submitting a foreign entity waiver request. DOE’s determination of a waiver request is final, and you cannot appeal an adverse decision on a waiver request.

3. Performance of Work in the United States All work for the awards under this NOFO must be performed in the U.S. To request a waiver of this requirement, you must submit an explicit waiver request in the application.

Without an approved waiver, such costs will not be allowed under the award. NOFO Part 2, Application Content Requirements, lists the requirements for submitting a foreign work waiver request.

4. Ineligible Participants The following entities are ineligible for this NOFO as a recipient, subrecipient, or subcontractor:

• In accordance with 2 CFR 200.214, entities banned from doing business with the U.S.

government, such as entities debarred, suspended, or otherwise excluded from or ineligible for participating in federal programs (2 CFR § 200.214)

• Entities identified on the Department of the Treasury Office of Foreign Assets Control Treasury’s Sanctions Program Specially Designated Nationals list. (OFAC – Sanctions List Service [treas.gov])

• Nonprofit organizations described in section 501(c)(4) of the Internal Revenue Code of 1986 that engaged in lobbying activities after December 31, 1995

Entity of Concern Prohibition Entities of Concern are prohibited from participating in projects under this NOFO. You can find details and definitions in NOFO Part 2, Eligibility, Other Eligibility Information, Entity of Concern Prohibition.

https://sanctionslist.ofac.treas.gov/Home/SdnList https://sanctionslist.ofac.treas.gov/Home/SdnList

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B. Limitation on Number of Concept Papers and Applications Eligible for Review

You can submit more than one concept paper and associated application to this NOFO, provided that each describes a unique, scientifically distinct project concept, and you submit an eligible concept paper for each full application.

C. Cost Sharing You must follow through on the estimated cost share commitments you proposed in your application if selected for award negotiations. You can find more information on cost sharing in NOFO Part 2, Eligibility.

1. Cost Share Requirements The cost share must be at least 50% of the total project costs3 for demonstration projects.4

This NOFO solely funds demonstration projects.

Applications that do not meet the minimum required cost share will be deemed ineligible during the initial compliance review. The cost share must come from nonfederal sources unless otherwise allowed by law.

The cost share percentage is calculated by dividing the cost share by the total allowable project costs for the award. Total allowable project costs include the government share (including Federal Funded Research and Development Center [FFRDC] costs, if applicable) and cost share. You can find a cost share information sheet and sample cost share calculation in NOFO Part 2, Eligibility—Cost Sharing, Cost Share Calculation Examples.

2. Unallowable Cost Share Sources The recipient or subrecipients may not use the following sources to meet cost share obligations including but not limited to:

• Cost share derived from Federal sources (unless otherwise authorized by law).

• Cost share that does not meet:

o Requirements set forth in 2 C.F.R. §§ 200.306 and 910.130 o Cost principles set forth in 2 C.F.R. §§ 200.400-476 and 2 C.F.R. §§ 910.352 o For State Energy Programs, requirements set forth in 10 C.F.R. §§ 420 o Cost share derived from the DOE loan program o Revenues or royalties from the prospective operation of an activity beyond the project period o Proceeds from the prospective sale of an asset of an activity

3 Total project costs are the sum of the government share, including Federal Funded

Research and Development Center (FFRDC) costs if applicable, and the recipient share of project costs.

4 Energy Policy Act of 2005, Pub. L. 109-58, sec. 988. Also see 2 C.F.R. 200.306 and 2 C.F.R. 910.130 for additional cost sharing requirements.

Version 4.1 Page 12 of 51 o Federal funding or property (e.g., Federal grants, equipment owned by the Federal Government) o Expenditures that were reimbursed under a separate Federal program o Cash or in-kind contributions used to meet cost share requirements for another

Federal project or program o Existing data as an in-kind contribution (e.g., data owned by an entity that is not routinely sold commercially but is instead donated to the project and assigned a value)

D. FFRDC Eligibility Criteria

1. DOE and Non-DOE FFRDCs as a Subrecipient

As long as no conflict exists, DOE and non-DOE FFRDCs may be proposed as subrecipients on another entity’s application subject to the following guidelines.

Authorization for non-DOE FFRDCs

The Federal agency sponsoring the FFRDC must authorize in writing the FFRDC’s participation on the proposed project, and you must submit this authorization with the application. The FFRDC’s use must be consistent with its authority under its award.

Authorization for DOE FFRDCs

The Cognizant Contracting Officer for the FFRDC must authorize in writing the FFRDC’s participation on the proposed project, and you must submit this authorization prior to any award. The FFRDC’s use must be consistent with the contractor’s authority under its award.

Funding, Cost Share, and Sub-Award with FFRDCs

The recipient and FFRDC must enter into an appropriate sub-award agreement that will govern, among other things, how the recipient funds the FFRDC portion of the work under its DOE award. This agreement must be fully executed before the FFRDC starts work directly related to the financial assistance award. The DOE funding office will fund the DOE FFRDC or non-DOE FFRDC participating as a sub-awardee under the DOE financial assistance award to the recipient.

You should prepare the budgets in your application using rates that would fund the FFRDCs through sub-awards. Your cost share requirement will be based on the total cost of the project, including the applicant’s, all subrecipient’s, and all FFRDC’s portions of the project.

Responsibility The recipient is the responsible authority for settling and satisfying all contractual and administrative issues, including but not limited to disputes and claims arising out of any agreement between the recipient and the FFRDC.

Limit on FFRDC Effort

The FFRDC effort, in aggregate, must not exceed 25% of the total project cost.5

5 Total project cost is the sum of the Government’s share, including FFRDC costs, and the recipient’s share.

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III. NOFO Description A. Background and Context

The electric power sector is the cornerstone of the American economy and is essential to quality of life, connection to family and community, and a strong job market. A reliable, affordable, and secure electricity grid is the backbone that the U.S. economy and national security depend on. Global supply chain disruptions, evolving technological landscapes, and increasing demands for critical products and services have highlighted the imperative to strengthen our national electric infrastructure, foster domestic innovation, and secure essential supply chains.

The U.S. electric sector is facing a severe supply chain bottleneck driven by an unprecedented surge in demand for power and distribution transformers. This demand, which has jumped by 116% for power transformers and 41% for distribution transformers since 2019,6 is fueled by rising electricity demand due to data center growth, reshoring manufacturing, electrification, the urgent need to modernize the aging grid infrastructure, and energy generation additions.7 In addition to increased transformer demand, demand across nearly every major category of electrical infrastructure has surged since 2019—by 35% to 274% depending on the equipment type.8 Consequently, utilities are experiencing extreme equipment shortages, with lead times stretching up to two years—a fourfold increase compared with pre-2022 levels— while market prices have skyrocketed by five to six times over the same period.9 This dramatic demand-supply imbalance is further exacerbated by insufficient domestic manufacturing capacity of grid components, forcing the U.S. to rely heavily on the import market, which is projected to supply 80% of U.S. power transformers and 50% of distribution transformers10.

To meet this rising demand, manufacturers have committed nearly $2 billion to new or expanded transformer capacity11. Still, Original Equipment Manufacturers (OEMs) have cited raw material constraints and technical labor shortages as bottlenecks to capacity expansion.12 Key subcomponent materials, such as grain-oriented electrical steel (GOES), copper, and aluminum, are in critically short supply.13 This shortage is intensified by significant volatility in

6 https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/.

7 making-the-connection-executive-summary-september-2025.pdf.

8 Transformers in 2026: Shortage, Scramble, or Self-Inflicted Crisis?

9 Killian McKenna, Sherin Ann Abraham, and Wenbo Wang, "Major Drivers of Long- Term Distribution Transformer Demand," National Renewable Energy Laboratory (NREL) / National Laboratory of the Rockies Technical Report, 2024.

10 https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/.

11 Transformers in 2026: Shortage, Scramble, or Self-Inflicted Crisis?

12 making-the-connection-executive-summary-september-2025.pdf.

13 https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/.

https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/ https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/ https://www.powermag.com/wp-content/uploads/2026/01/making-the-connection-executive-summary-september-2025.pdf https://www.powermag.com/transformers-in-2026-shortage-scramble-or-self-inflicted-crisis/ https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/ https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/ https://www.powermag.com/transformers-in-2026-shortage-scramble-or-self-inflicted-crisis/ https://www.powermag.com/wp-content/uploads/2026/01/making-the-connection-executive-summary-september-2025.pdf https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/ https://www.woodmac.com/press-releases/power-transformers-and-distribution-transformers-will-face-supply-deficits-of-30-and-10-in-2025/

Version 4.1 Page 14 of 51 raw material and energy pricing, alongside persistent labor shortages within the manufacturing sector.13

OE leads DOE’s efforts to ensure the affordability, reliability, and security of the U.S.

electricity grid.14 The Grid Supply Chain Program being implemented by OE seeks to (1) bolster domestic capabilities and capacity to handle supply chain shocks, (2) complement ongoing investments in domestic manufacturing capacity to meet increased equipment demands, and (3) strengthen supply chains for next-generation grid components that reduce demand for existing solutions and enable global dominance. To accomplish these goals, this program will implement a variety of initiatives to target different objectives that will foster a more secure, resilient, and competitive domestic manufacturing base for the electric grid.

This NOFO seeks to address the first goal by supporting projects that enhance the Nation's capacity to produce critical grid components and systems domestically, thereby reducing reliance on foreign sources and mitigating vulnerabilities inherent in extended global supply chains. This NOFO specifically targets the manufacturing and availability of distribution and power transformers, their associated components and materials, and other essential electric grid equipment, including but not limited to circuit breakers, switchgear, and battery energy storage systems. It will deploy a dual-pronged approach to address critical needs facing the nation as the grid is being upgraded and expanded to meet new loads.

The DOE OE recognizes that accelerating the pace of technological innovation and strengthening domestic manufacturing capabilities are crucial for maintaining economic competitiveness, creating high-quality American jobs, and ensuring national security. Through strategic investments, this solicitation aims to catalyze private-sector engagement, foster partnerships, and de-risk promising solutions. This NOFO targets projects that demonstrate a clear path to market, possess strong technical merit, and have the potential for significant domestic impacts that address critical vulnerabilities and strengthen the foundational elements of the Nation's electric infrastructure supply chain.

B. Program Purpose This NOFO is designed to strengthen the Nation’s energy security and energy dominance by building a more resilient, flexible, and domestically anchored supply chain for critical electric grid components. Through targeted investments, DOE aims to reduce reliance on vulnerable foreign-dominated supply chains, expand U.S. production capacity, shorten procurement lead times, and accelerate deployment of resilient grid assets. This NOFO will support projects that increase domestic manufacturing capability, enhance supply chain integration from raw materials to end customers, and enable timely delivery of critical grid equipment for capacity expansion, asset replacement, and system reliability.

The purpose of this NOFO is to reduce vulnerabilities in the current grid supply chain landscape—whether driven by constrained production capacity, foreign dependence, or long equipment lead times—by expanding U.S. capabilities across refurbishment and recycling as well as the production, integration, and adoption of alternative materials and subcomponents.

14 https://www.energy.gov/oe/office-electricity.

https://www.energy.gov/oe/office-electricity

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• Topic Area 1 fortifies near-term grid reliability by reclaiming, repairing, and recertifying existing grid equipment to quickly return functional components to inventory, relieving pressure on current supply chains and reducing procurement costs.

• Topic Area 2 addresses structural bottlenecks by enabling U.S. suppliers to identify, adopt, qualify, and integrate alternative domestically sourced materials and subcomponents, reducing reliance on foreign-dominated supply chains and improving lead times.

The two NOFO topic areas work together to strengthen U.S. manufacturing, improve grid resilience and affordability, and ensure that essential grid technologies are available when and where they are needed.

C. Program Goals and Objectives The overarching goal of this NOFO is to bolster domestic capabilities and capacity to handle supply chain shocks by strengthening domestic manufacturing and supply chains for critical grid components and technologies and reducing dependency on foreign suppliers, thereby enhancing the reliability, affordability, and security of the Nation’s electric power system.

Applicants under this NOFO are expected to advance one or more of the following objectives:

1. Expand domestic production capacity for critical grid materials and subcomponents essential to transmission, distribution, and grid supporting functions, including but not limited to battery energy storage systems, through manufacturing scale-up.

2. Strengthen U.S. supply chain integration by connecting domestic, qualified material and subcomponent suppliers, manufacturers, system integrators, and end customers.

3. Increase availability of critical grid equipment by supporting refurbishment facilities and programs, reducing procurement lead times, and diversifying inputs.

Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment Topic Area 1 focuses on increasing inventory and availability of critical grid equipment by identifying opportunities for utilities, or other users of electric grid transmission and distribution equipment, to enhance efforts to refurbish equipment and/or reclaim subcomponents and materials from components taken out of service for reasons such as (but not limited to) storm damage or end-of-life. Extending useful life of an asset, reusing some of the subcomponents, or processing to make a more useful feedstock are all actions that will have a positive impact on the U.S. grid supply chain. Applicants are expected to demonstrate progress in developing systems and processes for reusing, refurbishing, and recycling grid components; demonstrate use cases that these systems are cost-effective and scalable; and quantify reductions/impacts to purchases of new components/equipment per year.

Topic Area 2: Alternative Materials and Subcomponents

Topic Area 2 focuses on providing support for U.S. suppliers and manufacturers in identifying, qualifying, integrating, and adopting alternative materials and subcomponents, or other domestically sourced material and subcomponents, to reduce bottlenecks and strengthen domestic supply chains for critical grid components. Applicants must present a plan to de-risk the evaluation and integration of alternative materials and subcomponents for domestically manufactured grid equipment; address the financial, technical, and logistical challenges of

Version 4.1 Page 16 of 51 establishing and qualifying new supply chains; and incorporate the alternative materials and subcomponents into production.

Detailed technical descriptions for each Topic Area are provided in Section III.E Topic Areas.

D. Expected Performance Goals This section identifies the key performance goals that applicants are expected to advance, providing a foundation for consistent measurement of technical progress, supply chain enhancement, and domestic manufacturing impact. These performance goals ensure coherence across topic areas while preserving flexibility for diverse project approaches. These performance goals must include quantitative metrics with explicit targets defined. Additionally, the project approach must demonstrate a clear path toward achieving those targets and explain how progress will be evaluated.

Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment

Successful projects are expected to demonstrate measurable progress toward grid component investment recovery, reduce supply chain constraints, and decrease procurement times. These performance goals must include quantitative metrics, and the project approach must demonstrate clear achievements outlining how each goal will be met, the expected cost reductions by using refurbished equipment instead of new purchases, and the cost savings per unit.

• Reducing baseline lead times for equipment by utilizing refurbished equipment.

• Improving supply chain resilience by increasing the component re-entry rate.

Topic Area 2: Alternative Materials and Subcomponents Successful projects are expected to demonstrate measurable progress toward expanded domestic material and subcomponent production, enhanced domestic supply chain linkages, and reduced reliance on imports. These performance goals must include quantitative metrics, and the project approach must demonstrate clear achievements outlining how each goal will be met.

• Comparable or improved performance of critical grid equipment or components that incorporates alternative materials and/or subcomponents, either from innovations or from established technologies from alternative sources.

• Decreased domestic grid equipment and systems manufacturing lead times from integrated and streamlined supply chains that use domestically sourced materials and subcomponents.

• Scalability and suitability of alternative material or subcomponent identified through testing and/or customer commitments.

Additional performance goal details for each Topic Area are provided in Section III.E

Topic Areas.

Additional information can be found here for the Technical Volume and Technical

Review Criteria.

Version 4.1 Page 17 of 51

E. Topic Areas The NOFO is structured into two topic areas: (1) Refurbishment and Reuse of Critical

Grid Equipment and (2) Alternative Materials and Subcomponents. The two topic areas in this NOFO form a coordinated strategy to strengthen the reliability, security, and affordability of the U.S. electric grid by addressing complementary segments of the domestic supply chain. Topic Area 1 focuses on near-term reliability by increasing the availability of critical grid components through refurbishment, reclamation, or improved sourcing pathways—reducing immediate bottlenecks and reinforcing grid supporting infrastructure. Topic Area 2 builds on this foundation by advancing the use of alternative materials and subcomponents that diversify supply options and reduce dependence on vulnerable or foreign-dominated inputs, enabling manufacturers to adapt more rapidly to demand shifts and material constraints.

Topic Area Number Topic Area Title 1 Refurbishment and Reuse of Critical Grid Equipment 2 Alternative Materials and Subcomponents

1. Topic Area 1: Refurbishment and Reuse of Critical Grid Equipment

A total of $50 million (M) is available for this Topic Area; projects will be funded in the $2.5M–$15M per project range.

When designing and building components for our electricity grid, it's crucial to think about how they are made, how long they will last, and their lifecycle impacts.15 As our demand for electricity grows and old assets are replaced, so does the need for these grid components.

Many utility companies are currently experiencing long delays in getting these essential parts.

These delays are often due to global supply chain constraints and competition for the materials and subcomponent used to make them.16 The U.S. is actively exploring various ways to overcome these shortages and reduce lead times, which will help speed up the expansion and construction of our electrical infrastructure.

One key approach is to find ways to repair, refurbish, and extend the lifespan of existing grid components. For instance, refurbished distribution transformers can be quickly put back into service, with much shorter waiting periods compared with new ones. These refurbished units are also typically more affordable than purchasing new equipment.

Another strategy involves increasing how products and materials can be reused, moving toward a "circular economy" for grid components. Circular supply chains not only support a strong and competitive manufacturing sector but also offer other benefits across the economy.

Using recycled materials sourced within the U.S. reduces reliance on foreign resources for the electric grid, which is vital for national security. Innovations in processes, programs, and technologies can enhance and broaden the opportunity to reuse, repair, recycle, remanufacture, and repurpose products and materials. Creating circular supply chains in the U.S. strengthens the

15 DOE:Office of Electricity - Transformer Resilience and Advanced Components

(TEAC) Program: Vision and Framework (June 2020), Trac-program-vision-and-framework.

16 Electric Grid Supply Chain Review: Large Power Transformers and High Voltage

Direct Current Systems, Supply Chain Deep Dive Assessment, Document.

https://www.energy.gov/oe/articles/trac-program-vision-and-framework#:%7E:text=This%20Vision%20and%20Framework%20document%20describes%20the%20research,the%20system%E2%80%99s%20reliability%2C%20resiliency%2C%20efficiency%2C%20flexibility%2C%20and%20security https://www.energy.gov/sites/default/files/2022-02/Electric%20Grid%20Supply%20Chain%20Report%20-%20Final.pdf

Version 4.1 Page 18 of 51 manufacturing industry by establishing secure, domestic sources of critical materials, expanding the manufacturing workforce, and creating better-paying, higher-skilled, and safer jobs than traditional waste management. Beyond direct job creation, increased product and material circularity can also make U.S.-manufactured products more globally competitive17.

This topic area specifically aims to strengthen grid supply chains by identifying opportunities to recover components and materials from grid equipment that is no longer in use, whether due to project completion, storm damage, or reaching the end of its life. The main goal is to reduce the lead times for critical grid equipment by improving domestic capacity to repair, refurbish, reuse, and recertify components such as (but not limited to) distribution transformers, larger power transformers, circuit breakers, switchgear, reclosers, insulators, busbars, and high-voltage bushings, and then return them to inventory for reuse. The desired outcome is for electric utilities or other service providers to create or expand programs that reclaim, repair, refurbish, and recertify essential grid equipment. This process will extend the life of functional assets and lessen dependence on new manufacturing.

This approach offers a significant opportunity to save money by directly lowering utility purchasing costs and reducing lead times by utilizing refurbished equipment. The projects resulting from this topic area will address market needs, as refurbishment reduces the production burden on manufacturers, helping the U.S. electric industry recover faster from the current grid equipment deficit by diverting functional assets from disposal and extending their lifetime.

Further, success in this topic area could ease pressure on procurement and production processes, enhance technical capabilities at utilities, and improve the domestic supply chain for this equipment.

Applicants may propose any of the following approaches. Other practices may also be considered:

• Grid Investment Recovery Programs—Utilities may enhance, broaden, or implement programs to increase the amount of grid hardware that can be reused after being removed from service during regular maintenance.

• Grid Component Refurbishment—Demonstrating economically viable pathways to return equipment to service after it has been removed or retired from the grid, such as equipment that has reached its end-of-life or been damaged.

• Waste Management Improvement—Implementing better program, practices, or technologies to recover valuable materials such as copper, aluminum, and electrical steel.

Successful applicants must clearly demonstrate in their applications how their efforts will improve the rate at which materials re-enter the supply chain ecosystem, reduce procurement times, and lower costs.

2. Topic Area 2: Alternative Materials and Subcomponents

A total of $187 million is available for this Topic Area; projects will be funded in the $1M–$25M per project range.

The need to modernize and increase the capacity of the U.S. power grid is increasing due to growing population, aging infrastructure, grid resilience requirements, operational flexibility

17 Circularity for Secure and Sustainable Products and Materials: A Draft Strategic

Framework.

https://www.energy.gov/sites/default/files/2024-10/circularity-for-secure-sustainable-products-materials-report.pdf https://www.energy.gov/sites/default/files/2024-10/circularity-for-secure-sustainable-products-materials-report.pdf

Version 4.1 Page 19 of 51 needs, an increasing amount of load being added to the grid in the form of artificial intelligence (AI) data centers, reshoring manufacturing, and greater electrification. However, many critical components supporting the power grid have limited to no domestic manufacturing capacity and face supply chain challenges in supporting a rapid expansion of the grid.18 There are significant vulnerabilities in the U.S. grid supply chain, largely due to a historical trend of offshoring that has reduced domestic material and subcomponent manufacturing capabilities and capacity. This offshoring has led to strategic bottlenecks and overreliance on foreign sources, some of which are heavily influenced by adversarial nations.

Work performed under this topic area aims to support U.S. suppliers and manufacturers in adopting existing (TRL 6 or higher)19 domestically sourced alternative materials and subcomponents such as (but not limited to) electrical steel, ceramic bushings, insulation, continuously transposed conductors (CTC), other copper windings, or chemical precursors used in critical grid equipment or battery energy storage systems. The goal is to reduce current bottlenecks and decrease reliance on foreign-dominated supply chains for materials and subcomponents. Establishing pathways for new or alternative materials and subcomponents to be integrated into domestically produced grid components and equipment can ensure a robust supply chain for years to come. A follow-on effect should be decreasing the lead times for grid components by utilizing domestically produced alternative materials and subcomponents.

Applicants must present a plan to source the raw materials, produce material or subcomponents at scale domestically, integrate them into grid components, perform testing and validation adequate to support industry adoption, and demonstrate a high probability of uptake while addressing the financial, technical, and logistical challenges of qualifying new supply chains and incorporating novel or alternative materials and subcomponents into production processes.

Applications must clearly articulate how the project will strengthen domestic material and subcomponent manufacturing, diversify the supply chain, and contribute to U.S. energy dominance through a robust technical approach outlining the specific alternative materials or subcomponents to be developed or integrated. Quantifiable metrics are crucial for demonstrating progress, and applications must include specific measures such as percentage reduction in foreign source dependency, increase in domestic supplier capacity, and lead time reductions.

These metrics will enable effective tracking program objectives in achieving a more secure and resilient energy infrastructure.

Proposed alternative materials or subcomponents must have demonstrated performance and lifetime characteristics that meet equipment manufacturer requirements and industry standards. To be successful, applicants must structure their applications to clearly demonstrate how to mitigate supply chain shocks and price volatility in international markets through using domestically sourced alternative materials and subcomponents contributing to U.S. energy security and independence. Applicants must identify and partner with upstream supply chain contributors, such as feedstock suppliers and manufacturing equipment suppliers.

18 Electric Grid Supply Chain Review: Large Power Transformers and High Voltage

Direct Current Systems, Supply Chain Deep Dive Assessment, Document.

19 DOE G 413.3-4A, Technology Readiness Assessment Guide (2011), Page 9, Document.

https://www.energy.gov/sites/default/files/2022-02/Electric%20Grid%20Supply%20Chain%20Report%20-%20Final.pdf https://www2.lbl.gov/dir/assets/docs/TRL%20guide.pdf

Version 4.1 Page 20 of 51

For Topic Area 2, DOE will use a single award structure that includes Phase 1 and Phase 2 in a single project. These phases are both part of the same financial assistance award and do not represent separate funding opportunities, competitions, or application processes. At a defined internal Go/No-Go review point, DOE will assess each recipient’s progress toward required Phase 1 deliverables and overall project performance including cost and schedule execution. Recipients that successfully meet the Go/No-Go criteria will proceed with Phase 2 activities under the same award, while recipients that do not meet these criteria will conclude work at the end of Phase 1.

Phase 1 is the initial phase in which all recipients participate. The purpose of Phase 1 is to complete the technical, commercial, organizational, and supply chain groundwork required to enable rapid U.S. manufacturing scale-up and adoption by first customers. Phase 1 activities must focus on planning, manufacturing readiness, supply chain formation, domestic sourcing, and customer alignment—not laboratory research, technology maturation, or early-stage R&D.

Phase 1 execution must include a credible manufacturing readiness and scaling pathway showing how the recipient would produce an industry-accepted material or subcomponent output in Phase 2, including identifying equipment, staffing, throughput, testing and validation, and domestic sourcing requirements. During Phase 1, recipients will:

• Establish a fully integrated supply chain plan that accounts for upstream materials suppliers, U.S. manufacturing partners, and first customers for engineered materials and subcomponents (e.g., electrical steel, transformers cores, bushings, windings, CTCs) used in critical grid equipment or battery energy storage systems.

• Develop aligned system level technical specifications and manufacturability designs, ensuring that all stakeholders agree on production ready requirements, interfaces, safety certifications, quality expectations, and manufacturing constraints. This alignment must support immediate manufacturing sequencing—not laboratory prototyping or early technology validation.

• Define the U.S. manufacturing process flow, including required equipment, facility layout, quality control protocols, throughput/yield targets, and commissioning sequences needed to support scale-up. This plan should reflect realistic production operations rather than bench scale experimentation.

• Conduct detailed domestic sourcing assessments, mapping critical materials and processing steps to U.S. suppliers, and outlining strategies to reduce foreign-dominated inputs and shorten procurement lead times.

• Advance commercial alignment and demand certainty, including draft offtake structures, memorandums of understanding (MOUs), or purchase intent agreements with first customers; supplier agreements for key materials or subcomponents; cost sharing arrangements; and business/legal frameworks to be executed in Phase 2.

• Define quantitative manufacturing and impact metrics that will be measured…