Attachment 1 - Statement of Work.pdf

APPENDIX A

STATEMENT OF WORK

"2026 Distributed Wind Turbine Competitiveness Improvement Project”

9/14/2026

1. BACKGROUND

The National Laboratory of the Rockies (NLR) is the U.S. Department of Energy’s (DOE’s) primary national laboratory for energy systems research and development. As the energy systems laboratory, NLR’s unique strength lies in developing and integrating a broad array of energy technologies into robust, resilient systems - bridging foundational research with practical applications to lower energy costs, drive economic growth, bolster national security, and deliver abundant and reliable energy.

Distributed wind (DW) refers to wind energy systems (large and small) connected directly to the distribution grid, on the customer side of the meter, or at an off-grid location to support local loads or grid operations. Market analysis by NLR suggests there are gigawatts of economically viable distributed wind potential both behind the meter (sited by a residential, commercial, or industrial end-user to serve onsite load) and on local distribution systems. The DOE Integrated Energy Systems Office (IESO) sponsors a multifaceted wind energy technology research and development (R&D) portfolio to develop cost-competitive, high-performance technology to serve this vast U.S. energy resource and supply global distributed energy markets. The 2026 Competitiveness Improvement Project (CIP) aims to support American businesses who design and manufacture distributed wind turbine technology.

The goals of the CIP are to:

• innovate optimized distributed wind turbine and power electronics designs for increased energy production, grid support, and lower costs,

• develop advanced manufacturing processes,

• conduct testing for certification to national standards, and

• commercialize and validate distributed wind technology.

To date, the CIP has yielded numerous successes, including levelized cost of energy (LCOE) reductions of greater than 50%, increasing the number of certified distributed wind turbine systems, and successful listing of power electronics to the latest national standards. The CIP is designed to support small businesses pursuing innovative wind technology R&D at multiple phases of the product development cycle, from prototype to commercialization. Funded projects must demonstrate direct impacts on the American economy.

2. OBJECTIVE

The objective of the CIP is to expand U.S. leadership in the domestic and international distributed energy market sectors by assisting U.S. manufacturers in either lowering the LCOE of wind turbines with a rated power of 1000 kW or smaller through design and/or manufacturing process innovations, in obtaining certification/Listing of their technology, and validating and commercializing their improved, certified distributed wind technology. The expected outcome is an increase in the number of certified distributed wind turbines available for the U.S. market and reduction of the LCOE of these turbines installed in distributed applications.

3. SCOPE OF WORK

Under the CIP, the Subcontractor shall conduct work that fulfills the specific tasks for the corresponding topic area. The scope details for each topic area are provided in this section and the work required is described in the Tasks and Deliverables sections that follow. In all topic areas a disciplined engineering approach and a professional level of documentation is expected.

In all topic areas the Subcontractor shall identify a baseline wind turbine design for the project and in the case of innovation around a specific turbine component(s), the selected component(s) must be associated with at least one (1) wind turbine system and have stated support of the wind turbine original equipment manufacturer (OEM).

Although DW is not defined by size, for this effort the turbine size will be capped at 1000 kW rated power except for Small Turbine Certification and Listing topic area which is capped at 150 kW peak power per the scope of the American National Standards Institute (ANSI)/ American Clean Power Association (ACP) 101-1-2021 The Small Wind Turbine Standard. This turbine size limit does not apply to the Field Validation topic area, which is open to wind turbines of any size installed in distributed energy applications.

Power electronics components and devices used in conjunction with a distributed wind energy system include, but are not limited to inverters, inverter control and communications, power converters, turbine controllers, and microgrid/hybrid controllers.

CIP 2026 is comprised of thirteen (13) different topic areas covering distributed wind turbine, component, and distributed wind electronics development efforts. All projects should lead to an increase in the number of certified wind turbines and power electronics in the U.S. market, an increase in domestic manufacturing of distributed wind energy technology, and/or a reduction in the LCOE of wind turbines installed in distributed applications.

Wind turbine development topic areas

1. Prototype Design Development (PDD)

2. Prototype Manufacture (PM)

3. Prototype Installation and Testing (PIT)

4. Component Innovation (CI)

5. System Optimization (SO)

6. Small Turbine Certification and/or Listing (SWC)

7. Type Certification and Listing (TC) Power electronics development topic areas

8. Power Electronics Development (PED)

9. Power Electronics Pre-Testing (PEP)

10. Power Electronics Listing (PEL) Topics areas common to turbine and power electronics development

11. Manufacturing Process Innovation (MPI)

12. Technology Commercialization (COM)

13. Field Validation (FV)

To meet the objective, the scope of the work the Subcontractor shall perform entails the following:

3.1. Topic Area 1: Prototype Design Development

The scope of work for the Prototype Design Development topic area shall focus on completion of detailed analysis and design of a beta prototype turbine or component to reach readiness for manufacturing of a production prototype. The Subcontractor shall describe a wind turbine or component for this project which has completed, at a minimum the preliminary design stage of development, demonstrating an initial assessment of loads, identifying likely design challenges, and spelling out the next steps of the development process. The Subcontractor shall also describe the potential market space for which the turbine or component is being designed and demonstrate an assessment that the resulting product, once reaching market maturity, will have an LCOE that is competitive within that market. Design for certification or at least consideration of certification requirements should be documented. The selected component must be associated with at least one wind turbine and have stated support of the wind turbine OEM. Proposal can include proof of function testing for turbine or components but is not meant to fund manufacturing, installation, or testing of full prototype systems. NLR will provide technical and testing guidance including conducting a technical design review which may identify design and testing challenges that will likely need to be addressed for success. As part of the technical design review, NLR will complete a detailed concept viability assessment which must be successful to secure the full requested funding amount. The project result is expected to be a final design of a prototype turbine or component which would allow the manufacturer to construct and then test their prototype.

3.2. Topic Area 2: Prototype Manufacture

The scope of work for the Prototype Manufacture topic area shall be construction of a production prototype of a full turbine system that is ready for prototype testing. The Subcontractor is expected to have completed a CIP Prototype Design Development contract or have done similar work to develop a complete production design for the identified turbine. The Subcontractor shall also describe the potential market space for which the turbine is being designed and demonstrate an assessment that the resulting product, once reaching market maturity will have an LCOE that is competitive within that market. Design for certification or at least consideration of certification requirements should be documented. This topic area can include the purchase or manufacturing of all turbine components including the turbine, tower, and controls/power conditioning equipment. Part of those costs can include tooling and non-recurring engineering expenses for tooling and manufacturing at a prototype scale. Because a significant portion of project expenditures is expected to be used for the purchase of durable goods, a higher participant price participation is required so that U.S. Government funds are not used to purchase equipment that will have a useful life after the completion of the project.

The prototype turbine can be used for dynamometer-based testing or installed at an identified location. Prototype Manufacture proposals should only be considered for turbine systems that has undergone full system prototype development and have production-ready design documentation to support prototype fabrication. The project result is expected to be a final prototype turbine, manufactured and ready for installation and testing.

3.3. Topic Area 3: Prototype Installation and Testing

The scope of work for the Prototype Installation and Testing topic area shall focus on testing a prototype turbine or component to determine the commercial readiness. If desired, the Subcontractor may also request funding for the installation of the turbine or component at an appropriate location to initiate prototype testing. The Subcontractor shall identify a baseline wind turbine design that shall be the focus of this project. The expectation is that this project would address key design questions or issues that can only be investigated through full prototype testing. Although focused on one baseline turbine design, project elements can include the investigation of different component options.

To increase the probability of the new turbine design being reliable for the full warranty period and beyond, it is recommended that turbine testing include:

• Loads data from at least one blade, flapwise and edgewise

• Main shaft bending

• Tower base bending

• Wind speed and direction

• Grid conditions

• Rotor Speed

• Turbine generator power, voltage and current

• DC power, voltage and current (if appropriate)

• Inverter output power, voltage and current (and diversion load if applicable)

The purpose of gathering and analyzing these data is to look for outliers in the loads or electrical parameters and determine the cause. This will allow a determination of the possibility that other sites will produce significantly more frequent high loads than the test site and require larger factors especially on major components that are expected to last the life of the system.

For the electrical components/systems, the data can provide information on events such as lightning and grid excursions and how they stress the system.

The project results are expected to lead to a final turbine or component design that is ready for certification and serial production. This will support an increase in the number of U.S.– manufactured certified wind turbine products and reduce the LCOE of these products installed in distributed applications.

3.4. Topic Area 4: Component Innovation

The scope of work for the Component Innovation topic area shall focus on significant improvements of specific component(s) of an existing turbine design. Proposed efforts should focus on high-impact components, such as foundations, towers, alternators, rotor components, power conversion, controls, and associated hardware to allow technology to be more competitive in their existing market or become competitive in new market applications.

Proposals for Component Innovation must identify a baseline turbine for which the innovation will apply. If the proposal is not submitted by the manufacture of the baseline turbine, a letter of commitment must be included as part of the proposal along with a description of project collaboration. For components that can be applied to multiple turbines, identification of other turbines and additional letters of support are encouraged. Component Innovation proposals should only be considered for turbine systems that have undergone full system prototype development. The Subcontractor shall conduct work that supports designing, fabrication, testing and/or certifying improved component(s) for the baseline turbine. Elements of improvements and plans for a rigorous study for the development and manufacture of the component must be identified, including an assessment of certification requirements specific to the new component.

The improved component should result in reduced life cycle cost and/or increased performance, resulting in a lower LCOE and/or providing additional benefits, such as increased performance or higher reliability. Projects that increase costs but have sufficient performance improvements to lower the LCOE are acceptable. Benefits that are difficult to quantify explicitly, such as potentially higher availability resulting from system maintenance improvements, should be discussed in the proposal text. Component Innovation can also be used to develop turbine components that will allow the baseline turbine to enter new market areas, such as a tower configuration to allow installation in locations with limited crane access.

The Subcontractor shall show that the component innovation results in improved wind energy system performance and must provide the technical rationale for the proposed improvement, carefully assessing the associated risks and benefits. In the case of proposals developing a new application for existing technology, documentation must be provided to articulate the market and value that distributed wind would add in relation to existing methods of meeting energy needs in that market. The baseline costs, and proposed costs resulting from the proposed improvement, shall be provided in the proposal (see Attachment 4) as well as an indication of LCOE for competing technologies, especially for new market areas. LCOE parameters that cannot be directly quantified or documented, such as a potential efficiency increase, improved reliability, and reduced replacement, operations and maintenance costs should be articulated but not explicitly included in the LCOE calculation.

This scope of work emphasizes a disciplined engineering development process, tests to verify component, process, or system designs, and documentation necessary for certification and product commercialization. Consideration of multiple components will be considered, however if targeted at multiple interrelated components, System Optimization topic area may be more appropriate. The project results are expected to lead to an improved, certified production turbine with expanded capabilities, a lower LCOE over the baseline and/or the development of components that will allow the baseline turbine to compete in a new market with a significant advantage over existing options.

3.5. Topic Area 5: System Optimization

The scope of work for the System Optimization topic area shall focus on high-impact innovation across a full wind turbine system or subsystems leading to improved performance, reliability, cost, and/or advanced functionality. Proposed efforts should focus on high-impact subsystems, such as but not limited to the power conversion and controls, support structure (towers, foundations, and erection), drive train or application tailored products in which a change in one component will require expanded innovation in other related components. The Subcontractor shall select a specific system, subsystem or component(s) of a specific baseline wind turbine. The improved system development process, in general, involves the design and if appropriate fabrication of new systems, subsystems or combinations of components. Although it can be included, it is not expected that the new system or sub-system will have undergone certification but should include design for certification to ensure the resulting turbine can be (re-) certified.

The Subcontractor shall show that the innovation results in improved wind energy system performance and must provide the technical rationale for the proposed improvement, carefully assessing the associated risks and benefits. The system or subsystem should be optimized such that the cost and performance changes result in a reduced LCOE over the life of the turbine.

The baseline costs, and proposed costs resulting from the proposed improvement, shall be provided in the proposal (see Attachment 4). LCOE parameters that cannot be directly quantified or documented, such as a potential efficiency increase, improved reliability, and reduced replacement, operations and maintenance costs should be articulated but not explicitly included in the LCOE calculation.

This scope of work emphasizes a disciplined engineering development process, tests to verify component, process, or system designs, and documentation necessary for certification and product commercialization. If the subsystem is simple such as the rotor of a stall regulated wind turbine or the drivetrain of a turbine with a direct drive alternator, then the Component Innovation topic area may be a better fit. It is not recommended that a component manufacturer be the principal in a system optimization proposal unless they manufacture the whole subsystem being optimized. If the proposal is not submitted by the manufacture of the baseline turbine, a letter of commitment must be included as part of the proposal along with a description of project collaboration. System Optimization proposals should only be considered for turbine systems that have undergone full system prototype development. The project results are expected to lead to an improved turbine design with a lower LCOE over the baseline, ready for fabrication, prototype testing, (re-)certification and product commercialization.

3.6. Topic Area 6: Small Turbine Certification and/or Listing The Small Turbine Certification and/or Listing topic area is intended for turbines certifying to ANSI/ACP 101-1-2021 The Small Wind Turbine Standard. The Subcontractor may also include work to List the turbine assembly or component(s) to applicable electrical safety standards or other U.S. standards (e.g., UL 6142). Listing may be the sole effort in this topic area if the subject turbine is already certified or is in the process of certification. Listing of major power electronics, such as inverters, should utilize the Power Electronics Listing topic area. For turbine certification projects, this topic area has a cap of 150 kW peak power per the scope of ACP 101-1.

Project costs should include initial costs to support turbine surveillance as described in ACP 101-1-2021 (e.g., initial factory inspection, field inspection setup including remote monitoring and site identification) but is not expected to cover the full cost of on-going turbine surveillance. Data sharing with NLR will be a requirement during the project period of performance.

The project is expected to result in a turbine that has undergone all steps leading to certification/Listing.

3.7. Topic Area 7: Type Certification and Listing

The scope of work for the Type Certification and Listing topic area shall focus on type certification through the International Electrotechnical Commission Renewable Energy (IECRE) System (the International Electrotechnical Commission (IEC) system for certification to standards relating to equipment for use in renewable energy Applications). Turbines of any size, meeting the turbine size eligibility requirements in Section 3, may pursue type certification per IECRE Operational Document OD 501 (Type and Component Certification Scheme). Turbines up to 200 m2 rotor swept area may pursue type certification per IECRE Operational Document OD 554-1 (Type Certification Scheme for small wind turbines).

NLR strongly encourages manufacturers of turbines with a peak power up to 150 kW to pursue ACP 101-1 certification through Topic Area 6, Small Turbine Certification and/or Listing, given the higher cost of IECRE type certification and that IECRE is the only certification pathway available to turbines with peak power greater than 150 kW. Manufacturers of turbines up to 150 kW who choose to offer under this topic area should provide a strong justification for why IECRE type certification is essential to increase the potential U.S. market impact of their turbine system. Note that to obtain an IECRE type certificate the certification must be conducted by a Renewable Energy Certification Body (RECB) accepted by IECRE.

Type Certification consists of the following six (6) modules: design basis evaluation, design evaluation, type testing, manufacturing evaluation, final evaluation, and final type certificate as described in the respective IECRE Operational Document.

The project results are expected to lead to a globally certified production turbine available in the U.S. market.

Listing. The Subcontractor may also include work to list the turbine assembly, including controls and turbine subcomponents, to applicable electrical safety standards or other U.S.

standards (e.g., UL 6141).

3.8. Topic Area 8: Power Electronics Development

The scope of work for the Power Electronics Development topic area shall focus on the development of a standards-compliant power electronics device used in distributed wind turbine power conversion. Efforts may include evolution of conceptual hardware and/or controls design to the completion of a detailed design of a power electronics device ready for manufacturing of a prototype for pre-testing. This topic area also covers upgrading an existing product for standards-compliant functionality, controls, and security. Efforts under this topic area are not required to reach a complete, final system design, rather the focus can be on discrete components and/or functionality (e.g., advanced grid services) or detailed design of a power electronics system. The Subcontractor shall describe a power electronics device for this project which has completed, at a minimum, the conceptual design stage of development through some modeling and simulation. The Subcontractor shall also describe the potential market space and distributed wind system(s) for which the power electronics is being designed and demonstrate an assessment that the resulting product, once reaching market maturity, will have an impact on the U.S. distributed wind market. For pre-testing efforts including bench testing, hardware-in-the-loop (HIL) testing, and testing for functionality, the Power Electronics Pre-Testing topic area should be used.

As part of the technical design review, NLR will complete a detailed concept viability assessment which must be successful to secure the full requested funding amount. The project result is expected to be a new or improved power electronics design to be used with a distributed wind turbine system, which advances the manufacturer toward the goal of a prototype ready for pre-testing and eventual Listing.

Lab-based technical assistance may be available through design reviews and guidance and assistance on inverter controls/code, modeling, simulation, and interpreting standards.

3.9. Topic Area 9: Power Electronics Pre-Testing

The scope of work for the Power Electronics Pre-Testing topic area shall focus on pre-testing efforts of a power electronics device used in distributed wind turbine applications. Efforts may include preparing for testing (e.g., IEEE 1547.1), finalizing hardware models, bench or lab testing, power/controls HIL testing, testing for functionality, and pre-testing needed prior to Listing. Power electronics designs that are ready for Nationally Recognized Testing Laboratory (NRTL) testing for the purpose of Listing to applicable national electrical standards, Offerors should use the Power Electronics Listing topic area. For new designs or products requiring upgrades for controls and functionality, Offerors should use the Power Electronics Development topic area.

As part of the technical design review, NLR will complete a detailed concept viability assessment which must be successful to secure the full requested funding amount. The project result is expected to be a new or improved standards-compliant design of a power electronics device or component, to be used with a distributed wind turbine system, which is ready to pursue Listing to applicable national electrical standards.

Lab-based technical assistance may be available through design reviews and guidance and assistance on inverter controls/code, interpreting standards, and automated testing tools. Lab-based bench testing technical assistance may also be available including power and/or controls HIL (assuming the OEM has a model of hardware) and pre-testing for validation and preparing for Listing.

3.10. Topic Area 10: Power Electronics Listing

The Power Electronics Listing topic area is intended for the Listing of distributed wind turbine power electronics to applicable electrical standards (e.g., UL1741-SB). For pre-listing efforts such as programming to ensure power electronics functionality/controls and pre-testing, Offerors should use the Power Electronics Development or Power Electronics Pre-Testing topics areas. This topic area is not intended for the development of new power electronics, rather there should be an existing power electronics design that has been improved to meet the requirements of the identified, applicable standard(s), and already demonstrated successful bench or prototype operation. The Subcontractor shall work with an NRTL with a scope of test standard(s) that includes the applicable power electronic standard(s) for the Listing effort.

Testing may be performed at the NRTL’s laboratory facility or at the Subcontractor’s or other approved facility, witnessed by the NRTL. The project results are expected to lead to a Listed power electronics device to be used with a distributed wind turbine(s) in the U.S. market.

Lab-based technical assistance may be available through design reviews and guidance and assistance on inverter controls/code, interpreting standards, and the Listing process.

3.11. Topic Area 11: Manufacturing Process Innovation

The scope of work for the manufacturing process innovation topic area shall be focused on process advancements that will result in a more economic and reliable product and/or to meet growing market demand. Upgrades are intended to be in the manufacturing equipment, supply chain, quality control, and effective process development and organization. Products include complete distributed wind energy systems or major components or sub-systems such as towers, foundations, blades, and power electronics. This scope of work emphasizes a disciplined engineering development process, tests to verify process, and documentation necessary for certification and product commercialization but is not intended to require the development of fully new manufacturing processes.

The Subcontractor shall select a baseline wind turbine or component that shall be the focus of this project and shall conduct work that supports designing, building, and or testing improved manufacturing processes. This topic area can include the production or purchase of tooling or manufacturing equipment for the manufacturing innovation as well as costs associated with re-certification or conformity assessment of the turbine with the updated component, assuming that a new full system re-certification is not required. NLR funding can be used to support many aspects of the project, including design, engineering and prototype part development and product validation, but cannot be used for the purchase of durable goods or equipment, which should be covered under Subcontractor price participation. Manufacturing innovations may focus on improved product cost, quality, reliability, and manufacturing automation. The baseline costs, and proposed costs resulting from the proposed improvement, shall be provided in the proposal (see Attachment 4).

The project results are expected to lead to a product that is an improved, certified production turbine or a significant part of one, with a lower LCOE, improved reliability, and/or increased production over the baseline.

3.12. Topic Area 12: Technology Commercialization

The scope of work for the Technology Commercialization topic area shall be focused on the commercialization of certified distributed wind energy technology. This topic area is targeted at helping small companies with the costs associated with the commercialization process and developing partnerships with pathways for scale. Target markets should align with the top opportunities identified in the Distributed Wind Energy Futures Study1 conducted by NLR including agricultural lands, agricultural businesses, and commercial and industrial applications, especially in rural areas. Products include complete distributed wind energy

1 https://www.nlr.gov/wind/distributed-wind-futures systems or major components or sub-systems such as towers, blades, and power electronics.

Products must be certified, listed or formally in the process to become so. Appropriate activities include, but are not limited to, business model development, analysis of potential markets, development of key partnerships that can offer significant scaling, development of tools for customer and site qualification, processing incentives and financing, supporting training of installers and dealer networks, and analysis of ownership models, all which come at high financial risk because companies have not developed a project inventory to support such efforts. These initial commercialization activities should develop partnerships for impactful scale-up and establish a permitting, interconnection, and deployment pathway that lowers the barrier for an acceleration of subsequent deployments. Project funds cannot be used for the purchase of equipment or legal expenses, though project cost share (price participation) can be used to cover these expenses.

NLR or other national laboratories can provide technical assistance to the Subcontractor in supporting market development, such as through the implementation of tools or procedures developed by DOE, such as WindWatts, Distributed Generation Market Demand (dGenTM) model and other applicable lab-based tools.

The result of the project is expected to be an implemented commercialization plan, engineering, or other pre-development work to support greater technology access, and development of partnerships that enables access to new or existing products in new markets at an impactful scale. This topic area does not cover the development of promotional materials and project-specific sales activities including, but not limited to lead generation, follow-up, location specific design or permitting, or project specific closing costs.

3.13. Topic Area 13: Field Validation

The scope of work for the Field Validation topic area shall be focused on the installation of distributed wind energy technology in the field to validate performance and functionality. This topic area is open to wind turbine systems, components, power electronics, and multi-technology systems such as microgrids containing a distributed wind turbine. Distributed wind energy technologies eligible for this topic area shall be either certified/Listed to applicable national standards or in the process of seeking certification/Listing. Prototype technologies should use the Prototype Installation and Testing topic area for field testing. Wind turbines requiring field testing for the purpose of achieving certification should use the Small Turbine Certification and/or Listing or Type Certification and Listing topic areas. Power electronics requiring pre-testing should use the Power Electronics Pre-Testing topic area. Power electronics requiring testing by an NRTL for the purpose of Listing should use the Power Electronics Listing topic area. Field validation projects shall be installed in the U.S. or U.S.

territories. CIP turbine size limits do not apply to the Field Validation topic area, which is open to wind turbines of any size installed in distributed wind energy applications (stand-alone or interconnected to the distribution grid at a voltage below 69 kilovolts (kV).

Field validation projects should focus on choosing a location, or locations, and application for the installation of the distributed wind energy technology with a plan to assess and monitor its performance and functionality. Examples include but are not limited to installing a distributed wind turbine system to validate the expected power performance and controls strategy;

installed a newly certified distributed wind turbine to enable surveillance to meet the requirements of ACP 101-1-2021; installing an inverter in a distributed wind turbine system in the field to validate expected performance and functionality such as grid following, grid forming, and advanced grid functions, and communications; installation of multiple turbines in different wind regimes or climatic conditions to understand the impacts of turbulence and other conditions on system performance; or installing a distributed wind turbine in a microgrid application to validate performance and functionality in a multi-technology, hybrid configuration. Performance data shall be collected from the field validation project and shall be shared with NLR as a project deliverable.

For power electronics field validation, lab-based technical assistance may be available for field validation in existing distributed wind research turbines.

The project duration should be well defined in the field validation plan, noting that the period of performance can be longer than the typical twenty-one (21) months, up to a maximum sixty

(60) months for this topic area, if adequately justified.

4. Tasks The Subcontractor shall perform the work, conduct the meetings, and satisfy the deliverables for the specific topic area for which the proposal has been submitted (or topic areas for a multi-phase proposal). The Subcontractor shall comply with the technical requirements described herein. All tasks and deliverables for each topic area are described separately except for Task 4.1 (Communications and Market Data) which is identical for all topic areas.

4.1. Communications and Market Data (applies to all Topic Areas) The Subcontractor shall provide information to and engage in scheduled communications with the NLR Technical Monitor throughout the period of performance to include:

1) A Summary of Work Effort, void of business sensitive information, shall include but is not limited to the following information [NLR will provide a template]:

o Company Name o Company Contact/Principal Investigator o Project Title o Project Start Date/End Date o Project Budget (Subcontractor cost-share, NLR contribution, total) o Statement of Problem o Proposed Solution o Project Deliverables and Milestones o Work to be Performed o Project Outcome o Anticipated Benefits o Collaborating Entities/Type of Support o Reasons for Participation o Past CIP Awards o Awardee Quotes o Product Images

2) Information on the work effort suitable for inclusion in NLR and DOE news articles, to include high-resolution photos relevant to the effort for inclusion in NLR’s photo database and for public dissemination;

3) Photographs or other images that can be used by DOE and NLR in external communications products or web content;

4) Participation in monthly conference calls with the NLR team;

5) Quarterly project progress reports; and,

6) Completion of the Subcontractor’s response for the annual Pacific Northwest

National Laboratory (PNNL) distributed wind market data request for the Distributed Wind Market Report/Technology Update [PNNL will provide an annual template]

The following tasks are broken out by topic area, starting with Task 4.2.

Topic Area 1: Prototype Design Development The effort shall consist of the following key components: Design review based on current engineering knowledge and testing, Task 4.2, identification of critical design considerations, Task 4.3, that must be resolved prior to formal design efforts and the implementation of a development plan to address these considerations, Task 4.4. This would be followed by the development of final design, prototype manufacturing and testing plan, Task 4.5, and the production of final design drawings, Task 4.6. The Subcontractor is then required to submit a refined LCOE assessment (Attachment 4) based on the final product or application, Task 4.7.

Based on a detailed design review in Task 4.2, NLR shall make a determination whether the turbine under consideration is likely to lead to a product that is cost competitive in its defined market and can be certified. NLR will complete this assessment of viability based on the information presented prior to implementation and funding for further work. The table below provides an overview of the tasks associated with this work effort.

Task Primary Subcontractor activities Laboratory Assistance Task 4.1 Communications and Market Data

See 4.1 above. Develop communication products and provide market data

Task 4.2: Concept Design Review

Collection of technical and economic information on turbine design. Presentation of turbine concept to laboratory technical staff

Technical design review

– provision of feedback on turbine or component concept

Go/No Go Decision

NLR shall make a go/no-go determination on whether the project has a basis for moving forward

Task 4.3: Problem Resolution Plan

Identification of additional work needed to complete turbine design efforts

Provision of feedback on gaps analysis, and capabilities required

Technical design and process feedback throughout.

Task 4.4: Problem Resolution

Implementation of additional research and analysis tasks

Task 4.2: Concept Design Review The Subcontractor shall submit the turbine design (or component) proposed to a technical design review. The technical design review will be consistent with the standard to which the OEM expects to certify. The technical design review will be directed by NLR using subject matter experts available in house or from other DOE National Laboratories as appropriate. The review will include a detailed technical review meeting with the Subcontractor presenting a review of the technical concepts, performance estimation, cost assessment and responding to questions from the experts. The Subcontractor shall provide an estimation loads that will have to be determined by testing and performance assessment as part of this process. If the loads data for planned certification will be developed based on loads measurements on the turbine, some method of estimating loads analytically must be developed. While this work effort is configuration agnostic, the Subcontractor must show capability to develop loads that NLR can be confident are reasonable and based on sound engineering.

Based on the design review, NLR will determine whether the turbine (or component) design is technically viable and ready for the next stage of development (this will be a go/no-go decision which continuation of the project will be conditioned upon). The intent of this evaluation is to ensure that the turbine or component is ready to progress to production design and is potentially technically and commercially viable. It is expected that technical problems and challenges will be identified that will be addressed during the next stage of development. As long as the challenges appear to be solvable, and the concept is otherwise viable the project can be approved for the next stage. Examples of potential gaps or issues may include:

• Analysis of turbine design loads

• Development of specific loads analysis models in defined tools (e.g. OpenFAST)

• Detailed manufacturing cost estimation

• Assessment of materials or manufacturing processes

• Review of technical or cost analysis

• Other efforts that a small company may not have the capabilities to achieve.

Task 4.5: Final Design, Beta Unit Construction, and Testing Plan

Development of a final design, beta unit construction, and testing plan

TM Go/No Go Decision

Once the plan is approved by the NLR Technical Monitor, the project will be allowed to proceed.

Task 4.6: Final Turbine Design

Production of detailed final design documentation and drawings which may include additional testing and design efforts

Technical design and process feedback throughout.

Task 4.7: Final Report and revised Levelized Cost of Energy

Final reporting

If a no-go decision is made, NLR will provide recommendations on areas of increased technical investigation.

Task 4.3: Problem Resolution Plan The Subcontractor shall develop a problem resolution plan that addresses all problems and challenges identified in Task 4.2. The plan shall include a summary of the issues and gaps identified, the approach for resolution, and the resources (people, vendors, and tools) they expect to use. The plan shall include technical assistance needs from others as appropriate.

Task 4.4: Problem Resolution The Subcontractor shall implement the problem resolution plan developed in Task 4.3 above and document the results. Documentation shall include the results of the problem resolution effort including challenges, an explanation of differences between the planned effort and actual effort required, and a summary of the solutions developed.

Task 4.5: Final Design, Beta Unit Construction, and Testing Plan The Subcontractor shall submit a plan to the NLR Technical Monitor for the final (production) design development which may include construction of beta-prototype units and, if needed, testing of the beta-prototype components or units if uncertainty in the analysis justifies specific testing prior to the development of a full production prototype. The plan shall include technical assistance needs from others, as appropriate if specific beta-prototype design testing is needed. A schedule and budget shall be included in the plan. Once the plan is approved by the NLR Technical Monitor, the project will be allowed to proceed.

Task 4.6: Final Turbine Design The Subcontractor shall implement the work identified in Task 4.5 resulting in the completion of the turbine design. The end-product shall be a final (production) design package that includes design drawings, loads analysis, manufacturing cost and performance calculations. These products will be sufficiently developed so that they could be used for the building of a production prototype for prototype testing.

Task 4.7: Final Report and revised Levelized Cost of Energy The Subcontractor shall develop a report that documents the challenges and benefits of the prototype design development. They shall also provide an LCOE calculation with a baseline cost calculation along with an explanation of any changes in the LCOE calculations as compared to original early estimations. The Subcontractor shall use an original form of Attachment 4 to document final costs, expected final performance and resulting LCOE. It is not unusual that the LCOE increases with a more developed design.

Topic Area 2: Prototype Manufacture The Subcontractor shall construct a production prototype of its turbine. The effort shall consist of the following key components: Design review, Task 4.2, manufacturing plan development, Task 4.3, and construction of the prototype turbine, Task 4.4. The Subcontractor is then required to submit a refined LCOE assessment (Attachment 4) based on the final product or application, Task 4.6. Based on a design review conducted under Task 4.2, NLR shall make a determination on whether the turbine under consideration meets the design criteria for prototype construction.

The table below provides an overview of the tasks associated with this work effort.

Task 4.2: Design Review The Subcontractor shall submit the proposed turbine design to a technical design review. The technical design review will be consistent with the standard to which the OEM expects to certify the turbine. The technical design review will be directed by NLR using subject matter experts available in house or from other labs as appropriate. The evaluation will include a detailed technical review meeting (virtual) with the Subcontractor presenting a review of the technical concepts, performance estimation, cost assessment and responding to questions from the experts.

Based on the design review, NLR will determine whether the turbine is ready for prototype construction (this will be a go/no-go decision which continuation of project will be conditioned upon). The intent of this review is to ensure that the turbine in the current configuration is a mature enough design for certification testing and manufacturing production and that it meets market requirements to be competitive. Development of loads must be thorough and consistent with the certification planned. If the loads data for certification are to be developed based on loads measurements on the turbine, some method of estimating loads analytically must have been developed and provided. While this offering is configuration agnostic, the Subcontractor must show capability to develop loads that NLR can be confident are reasonable and based on sound engineering. At this stage, some level of pre-production prototype testing may already have been essential for a turbine that will be certified based on measured loads.

Task Primary Subcontractor activities Laboratory Assistance Task 4.1 Communications and Market Data

See 4.1 above. Develop communication products and provide market data

Task 4.2: Design Review

Collection of technical and economic information on turbine design.

Presentation of prototype design to laboratory technical staff

Technical design review – provision of feedback on turbine design details

Go/No Go Decision

NLR shall make a go/no-go determination on whether the project has a basis for moving forward

Task 4.3:

Manufacturing and Tooling Plan

Provide a detailed manufacturing plan Technical design, process, and deliverable-specific feedback throughout.

Task 4.4: Turbine Construction and Assembly

Document the construction of the prototype turbine or component

Task 4.5: Revised Levelized Cost of Energy Report

Final reporting with revised LCOE

Task 4.3: Manufacturing and Tooling Plan The Subcontractor shall provide a detailed manufacturing plan that includes identification of vendors for each component, suppliers for materials, and tooling required for each component that the Subcontractor will manufacture in house. An itemized cost accounting will be prepared that covers part costs for the prototype and volume production, non-recurring engineering, tooling, facilities, burdened labor, and any other costs for manufacturing. The plan will include a QA/QC process plan and a manufacturing documentation management process.

Task 4.4: Turbine Construction and Assembly The Subcontractor shall submit a report documenting the construction of the prototype turbine.

The report shall include all lessons learned during the construction of the turbine including manufacturing or process changes that were identified during the construction. The Subcontractor shall create servicing manuals and submit them with this report.

Task 4.5: Revised Levelized Cost of Energy Report At the completion of the prototype construction effort, the Subcontractor shall develop a revised LCOE, comparing the baseline, proposed and actual cost elements. The Subcontractor shall use an original form of Attachment 4 to document final costs, expected final performance and resulting LCOE. The Subcontractor shall summarize the final system costs and describe, in detail, how and why it is consistent or different from the estimates included in the original proposal.

Topic Area 3: Prototype Installation and Testing The Subcontractor shall conduct prototype testing of its turbine or turbine component.

Optionally, the Subcontractor may choose to fund the installation of the turbine or component at the testing location. The effort shall consist of the following key components including a design review (Task 4.2), development of a test plan/specification (Task 4.3), and reporting of test results (Task 4.4). Based on a detailed design review, NLR shall make a determination on whether the turbine or component under consideration meets the design criteria for prototype testing. The table below provides an overview of the tasks associated with this work effort.

If installation is included as a specific project outcome, deliverables (Section 6.0) should be included to document the installation of the turbine, incorporating separate payments and specific timelines.

Task Primary Subcontractor activities Laboratory Assistance Task 4.1 Communications and Market Data

See 4.1 above. Develop communication products and provide market data

Task 4.2: Design Review

Collection of technical and economic information on turbine design.

Presentation of prototype design to laboratory technical staff

Technical design review – provision of feedback on turbine design details

Task 4.2: Design Review The Subcontractor shall submit the proposed turbine or component design to a technical design review. The design review will be consistent with the standards that the OEM expects to certify the turbine or component to. The technical design review will be directed by NLR using subject matter experts available in house or from other DOE National Laboratories as appropriate. The review will include a technical review meeting with the Subcontractor presenting a review of topics based on discussions with the NLR technical monitor, but are likely to include the technical concepts, performance estimation, testing efforts to be undertaken, cost assessment and responding to questions from the experts.

Based on the design review, NLR will determine whether the turbine or component is ready for prototype testing (this will be a go/no-decision which the remainder of…