Energy Storage Demonstration and Pilot Grant Program

Federal Agency

Sub-Department

Office of Clean Energy Demonstrations (OCED)

Purpose

To research and develop large-scale energy storage systems that improve the security, reliability, efficiency, optimization, and stability of the grid, including the integration of renewable energy, microgrids, energy storage, and vehicle charging.

Applicant and/or Project Eligibility Requirements

Eligible entities include a State Energy Office, an Indian Tribe or tribal organization, an institution of higher education, an electric utility (including IOUs, POUs, and rural electric cooperatives), and a private energy storage company. Local governments and community based organizations are eligible recipients too.

Decarbonization Considerations

Each project under this new energy storage grant program must meet at least one objective out of the program’s list of objectives. These objectives include: energy storage services that improve the reliability, resiliency, and optimization of transmission or distribution system operation; to supply energy at peak periods and to reduce peak loads; to integrate renewable energy resource production; to enable the use of stored energy in forms other than electricity to support the natural gas system and other industrial processes; to integrate fast charging of electric vehicles; and to improve energy efficiency. To reduce peak loads of homes and businesses and increase the feasibility of microgrids (grid-connected or islanded mode).

Equity Considerations

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

While no matching funds are required, priority will be given to those leveraging non-federal funding. Consider projects that have the potential to scale up in the nation and explicitly address the intermittent supply risks of renewable energy resources.

Other Notes

This is part of the larger Energy Storage System Research, Development, and Deployment Program established under the better energy storage technology section of the Act. The intent is for the Secretary to enter into agreements with at least three demonstration projects by Sep. 30, 2023. Funding expires in 2025.