Energy Improvements in Rural or Remote Areas

Federal Agency

Sub-Department

Office of Clean Energy Demonstrations (OCED)

Purpose

To help deploy community-driven clean energy solutions in rural and remote areas across the country.

Applicant and/or Project Eligibility Requirements

Eligible applicants include institutions of higher education, for-profit and non-profit organizations, state, local governments, and Tribal Nations, incorporated and unincorporated consortia.

Decarbonization Considerations

This program will fund projects that advance one or more of the following resilient clean energy objectives: Improving overall cost-effectiveness of energy generation, transmission, or distribution systems; Siting or upgrading transmission and distribution lines; Reducing greenhouse gas emissions from energy generation in rural or remote areas; Providing or modernizing electric generation facilities; Developing microgrids; and, Increasing energy efficiency.

Equity Considerations

Rural communities are often left behind in energy transition conversations. Particularly with projects that require siting within a community, it is important to engage relevant groups early and provide residents with appropriate opportunities to weigh in on project decisions that impact their communities. See the "Equity Design Considerations for Federal Funding" for general considerations and additional sector-based resources: https://cityrenewables.org/resources/equity-design-considerations-for-federal-funding/

Helpful Tips

If awarded, this grant could be prepared with recent IRA tax incentives to further reduce the cost of a clean energy installation. Additionally, the inclusion of energy efficiency in the eligible projects means that applicants could take advantage of the benefits of energy efficiency upgrades to reduce carbon emissions, even where clean energy projects and transmission upgrades are less politically feasible.

Other Notes

$200,000,000 appropriated annually for fiscal years 2022 through 2026 (to remain available until expended) See past awardees here: https://www.energy.gov/oced/energy-improvements-rural-or-remote-areas-selections-award-negotiations