Department of Energy Backs Microgrid Innovation with $8 Million in New Funding

The U.S. Department of Energy (DOE) Office of Electricity gave a big boost to microgrid innovation earlier this month with the announcement that 14 projects had been selected to receive more than $8 million in funding from the Community Microgrid Assistance Partnership (C-MAP).

The projects were selected because they will advance microgrid innovation, delivering energy reliability and affordability to 35 remote towns and villages in Alaska, South Dakota and Nevada.

Remote parts of the country typically have some of the highest electricity prices. In Alaska, residents and businesses in rural villages pay three to five times the price for electricity than those in more developed urban areas.

In addition to higher prices, electric reliability is sub-standard in these areas, which are often located at the end of transmission lines. As a result, these communities suffer frequent and extended service disruptions caused by severe weather or aging and inadequate grid infrastructure.

Those beyond the reach of the power grid commonly rely on diesel generators for power – a costly energy source subject to supply chain disruptions.

Addressing rural energy problems with microgrids

The selected C-MAP projects aim to address poor power quality, outage and affordability issues by modernizing power systems and prioritizing local energy supply chains.

This includes implementing advanced controls and monitoring software to optimize system performance and developing local workforces to manage long-term system operations and maintenance.

“Funding for the C-MAP projects cover costs associated with designing, engineering, and sustaining microgrid systems that bring the reality of America’s energy abundance to rural homes, businesses, and industries,” said Gil Bindewald, principal deputy assistant secretary in the Office Electricity. “We want to see microgrid designs that work not just on paper but in the real world.” 

C-Map will disperse $5.5 million in direct funds and another $2.6 million in the form of technical expertise from the DOE’s national laboratories and the Alaska Center for Energy and Power at the University of Alaska.

12 Alaskan projects selected

By far, Alaskan projects were the biggest C-MAP funding winners – 12 of the 14 selected projects are in the 49^th state, including:

• Kwig Power Company: Six microgrid-powered villages were awarded $650,000 to develop microgrid utility models that address challenges around coastal erosion and land loss, permafrost thawing and high energy costs.
• Alaska Municipal League: Five microgrid-powered communities were awarded $574,459 to study operational, development, workforce and maintenance strategies in isolated communities with a diverse energy mix.
• Organized Village of Kwethluk: $500,000 was awarded to four villages to fund the development of standardized, scalable and flexible microgrid configurations.

“The 12 high-caliber projects selected in Alaska through C-MAP exemplify the innovation, collaboration, and resourcefulness in the 49^th State,” said Dr. Erin Whitney, director of the Arctic Energy Office at the U.S. Department of Energy. “Microgrids in remote Alaska are far too often dependent on flying or barging in diesel fuel, facing outages caused by extreme weather or aging conditions, and overcoming workforce shortages or logistical nightmares. These C-MAP investments will play an outsized role in propelling these communities forward.”   

Award selection does not guarantee funding

C-MAP also awarded funds to tow projects in the lower 48. Five Sioux Tribes in South Dakota will collaborate on using microgrids to improve energy reliability for businesses and residential areas.

In Washoe County, Nevada, the Nevada Clean Energy Fund and Nevada Energy will be among the partners on a feasibility study for a community-scale multi-technology microgrid designed to provide backup power for the remote town of Gerlach.

“Microgrids come in many forms, and we have more technologies for generating and managing power than ever before. However, adoption is limited by microgrid system complexity, capital costs, and commissioning times,” said Dan Ton, C-MAP lead for the Office of Electricity. “I believe the United States can lead the world in standardized, modular, and scalable microgrids, but this requires research-backed demonstrations that can be replicated nationwide.”  

While C-Map has announced its selected projects, dispersal of the funds is not guaranteed. Funds will only be awarded after applicants have successfully completed the DOE’s negotiation process.