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Distributed Energy Systems Demonstrations

Federal Agency


Office of Clean Energy Demonstrations (OCED)


To support demonstrations that de-risk technologies needed to manage variable generation; control flexible loads; and integrate energy storage, electric vehicle (EV) charging, and other facilities into the U.S. transmission and distribution grids.

Applicant and/or Project Eligibility Requirements

OCED anticipates funding commercial-scale projects that demonstrate approaches that integrate grid-edge renewable and distributed energy systems with broader energy networks. These projects will seek to demonstrate reliable operations and system-wide value in the context of distribution grids with high levels of variable renewable generation and flexible load assets.

Decarbonization Considerations

This program seeks to tackle the challenges of demonstrating reliable system operations within larger systems using more diverse flexible energy assets at a higher proportion of peak load than has been widely demonstrated in the past. From the NOI: Flexible aggregated systems in multiple configurations, including Virtual Power Plants (VPP) could provide value to the grid operator in terms of energy, capacity, and reliability services, and value to the asset owners through avoided integration costs and/or lower energy costs.

Equity Considerations

To support the goals of building a clean and equitable energy economy, DOE anticipates supporting projects that define a robust Community Benefits Plan, including: • Supporting meaningful community and labor engagement; • Investing in America’s workforce and support good jobs; • Advancing diversity, equity, inclusion, and accessibility; and, • Contributing to the President’s goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities (the Justice40 Initiative).

Helpful Tips


Other Notes


Deadline (Announced or Anticipated)

December 13, 2023 (Concept Paper); April 15, 2024 (Full Application)

Funding Available


Max Award Amount


Expected Allocations


Average Award (Estimated)


Matching Funds

50% cost share required

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