DOE announces $۱۲۵M in grid modernization, power resilience grants

An increase in the number of power sources with diverse supply and demand signatures daily requires software to efficiently optimize supply. The incentive, which became effective on Jan. 1, 2025, rewards utility-developed programs or measures that allow aggregated control of DERs up to 20 MW either directly by the utility or by a third party and splits verified net savings between the utility (30%) and ratepayers (70%).86 Proposed programs or measures must undergo stakeholder review and be approved by the state commission to be eligible for the incentive. DERs offer a practical, low-cost, and scalable solution that enables customers and utilities to manage energy use, reduce costs, increase resilience, and, by aggregating these resources through VPPs, deliver efficient and flexible grid operations. Louisiana, North Carolina, and Oregon are developing community-based resilience programs that deploy DERs to support the grid and serve customers during system outages.

Some DERs can be installed on the customer’s side of a utility’s electric meter, referred to as “behind the meter,” enabling consumers to control their energy bills, reduce their draw from the electric grid, or stay powered during grid outages. DERs are https://belfastinvest.net/economy/businessware-technologies-is-your-one-stop-full-cycle-development-partner.html technologies that generate, store, or manage electricity close to where it is used, such as batteries, rooftop solar panels, community solar, managed electric vehicle charging, smart thermostats and appliances, and advanced building controls (systemwide automation that monitors and manages energy use in buildings). Further, DER technologies are commercially available now, affordable for many consumers, and can be installed in a matter of months compared with at least five years for new large gas-fired power plants or high-voltage transmission lines.

From December 2024 to December 2025, electric rates increased more than 6% nationally, with some areas of the country experiencing double-digit rate growth.9 These higher costs are squeezing customers’ tight budgets. In contrast, failing to maximize DER and VPP deployment risks over investment in traditional grid infrastructure, higher electricity bills for consumers, and missed opportunities for cleaner, more reliable electricity. Unlike costly and slow traditional approaches, such as building new large power plants or high-voltage power lines, DERs are typically installed at the home, business, or industrial site where the electricity is needed, enabling customers to participate in smart management of energy use, helping them reduce their electricity bills, and increasing power grid resilience and reliability to prevent outages. Rapidly growing electricity demand from manufacturing, data centers, and electrification is straining the aging grid, and extreme weather and prolonged outages are causing reliability concerns. FPL’s support for efforts like the 35 Mules program also signals a growing interest in solutions that help utilities modernize their operations and infrastructure. The utility was able to restore power to millions of customers quickly and selectively because it wasn’t https://www.internetling.com/category/internet/internet-protocol just focused on building stronger infrastructure; it had built a more intelligent system.

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The first phase will focus on local pilot regions, including New England, New York, and California. This represents a first-of-its-kind collaboration that has the potential to reduce economic impacts from severe weather across the country.” Through utility‑led case studies, closed‑door roundtables, and interactive workshops, the program tackles real‑world issues including wildfire and hurricane preparedness, storm restoration, DER integration, and cybersecurity.

• The Northeast faces distinct challenges, including transportation electrification, aging infrastructure, renewable integration, grid modernization, and increasingly severe weather.
• Legacy approval and engineering workflows can’t keep up with the build schedules of hyperscale data centers.
• With a strong focus on sustainability and grid resilience, Eaton enables commercial and utility customers to optimize distributed energy resources and manage complex grid dynamics.
• Rapidly growing electricity demand from manufacturing, data centers, and electrification is straining the aging grid, and extreme weather and prolonged outages are causing reliability concerns.
• Australia’s energy market transformed dramatically starting in the 2010s, shifting from a heavy reliance on coal to the world’s highest adoption of DERs, or “consumer energy resources” as they’re called in that country.

Utilities need to see where hazards, assets, customers, crews, and outages intersect to help anticipate risks, coordinate preparedness and response, and prioritize investment decisions. As outages occur, AI-assisted systems can help triage customer reports for human review and response, drones can rapidly assess damage, and dispatch systems can dynamically optimize crew routes around blocked roads and shifting conditions. “State commissions can address the bias against DER investment and deployment by reviewing and adjusting the existing financial frameworks for utilities.” State commissions can address the bias against DER investment and deployment by reviewing and adjusting the existing financial frameworks for utilities. To achieve the VPP targets, utilities should be allowed to use various mechanisms, including bilateral contracts with VPP providers, programs that allow customers to receive compensation for subscribing or opting into a VPP, or distribution system operator tariffs that create a market-based payment structure for customers who participate in VPPs.