DE-FOA-0003138 Notice of Intent to Issue Funding Opportunity Announcement No. DE-FOA-0003139 - Distributed Energy Systems Demonstrations | DE FOA 0003138

Opportunity Information: Apply for DE FOA 0003138

DE-FOA-0003138 is a Notice of Intent from the U.S. Department of Energy (DOE), specifically the Office of Clean Energy Demonstrations (OCED), signaling that DOE plans to release a future Funding Opportunity Announcement (FOA) called DE-FOA-0003139, titled "Distributed Energy Systems Demonstrations." Because this is only an NOI, it is essentially an early heads-up to the market: it outlines DOE's thinking and direction, but the agency can still change the final scope, requirements, and timeline, or decide not to issue the FOA at all.

The core aim of the planned funding is to support commercial-scale demonstration projects that reduce risk (both technical and business risk) for solutions needed to run a modern grid with lots of variable renewable energy and flexible demand. In practical terms, OCED is looking for projects that prove, at real operational scale, how to manage variability from renewables, control flexible loads, and integrate assets like energy storage systems and electric vehicle charging in ways that provide measurable value to the grid. The emphasis is on the distribution system and the "grid edge" where customer-sited or community-sited technologies, local generation, storage, and controllable loads interact directly with utility operations.

The demonstrations OCED anticipates funding are meant to show integrated approaches rather than isolated component tests. The NOI highlights projects that connect distributed energy resources and renewable generation at the edge of the grid with broader energy networks, demonstrating reliable operations and system-wide benefits. This includes proving that these configurations can work in distribution areas with high renewable penetration and a meaningful presence of flexible load assets. The intent is to move beyond pilots that run briefly or under limited conditions, and instead operate these systems for sustained periods to build confidence that performance, reliability, and economics hold up in the real world.

OCED frames this effort as a complement to existing and prior DOE work, filling remaining gaps where adoption is still slowed by unresolved technical challenges, integration complexity, or limited proof at scale. The NOI references earlier and ongoing DOE initiatives such as SHINES (Sustainable and Holistic Integration of Energy Storage and Solar PV) and Connected Communities, as well as coordination and planning efforts through the Grid Modernization Initiative (GMI) and Clean Energy to Communities (C2C). It also points to larger demonstration and deployment-oriented programs like Energy Improvements in Rural and Remote Areas (ERA) and Grid Resilience and Innovation Partnerships (GRIP). The message is that DOE has funded pieces of this problem in multiple places, and this planned FOA is intended to push integrated, commercial-scale demonstrations that address what still blocks broad replication.

A key challenge this program wants to tackle is operating a distribution system reliably while using a wider variety of flexible assets, and doing so at a higher proportion of peak load than has been commonly demonstrated. That detail matters because many earlier projects prove concepts at modest penetration or under controlled operating windows. OCED is signaling an interest in demonstrations where flexible assets (like storage, managed EV charging, controllable building loads, and distributed generation) are not just present, but are substantial enough to meaningfully shape how the system meets peak demand and manages variability. Another stated objective is capturing and sharing best practices, so that lessons learned translate into simpler, faster adoption by utilities, communities, and developers elsewhere.

From a public benefits standpoint, DOE ties this investment area to improving grid reliability, resilience, and cost-effectiveness, while also delivering benefits to communities and workers. The NOI explicitly links the effort to federal climate and decarbonization targets, including economy-wide net-zero goals and near-term power sector emissions reductions. In other words, this is not just an engineering exercise; it is positioned as a pathway to scale distributed energy solutions that can support higher renewable penetration without sacrificing reliability, while also improving affordability and resilience outcomes.

In terms of the opportunity mechanics described in the source data, the opportunity is categorized as discretionary funding from DOE Headquarters, with awards expected to be made via cooperative agreements (which typically implies substantial federal involvement in project execution, reporting, and decision points compared to a more hands-off grant). The activity category is energy, and the CFDA (now commonly referred to under Assistance Listings) number listed is 81.255. The data indicates an anticipated award ceiling of $25,000,000 and an expectation of about 4 awards, which suggests relatively large, high-impact demonstrations rather than many small pilots. Eligibility is listed broadly as "Others" with a note to consult the full eligibility language in the eventual FOA; in practice, DOE demonstration programs often involve multi-party teams that can include utilities, technology providers, project developers, local governments, community entities, and other stakeholders, but the final FOA would control what is allowed.

The posting indicates a creation date of July 26, 2023, and an original closing date of January 29, 2024, though for an NOI the key point is that it precedes the actual FOA and final application window. The most important caution in the notice is repeated clearly: this is not the FOA itself. Applicants should treat it as directional guidance about the kinds of commercial-scale distributed energy system demonstrations DOE wants to see, while waiting for the official DE-FOA-0003139 announcement for definitive topic areas, submission requirements, cost share expectations (if any), merit review criteria, and compliance obligations.

• The Department of Energy, Headquarters in the energy sector is offering a public funding opportunity titled "DE-FOA-0003138 Notice of Intent to Issue Funding Opportunity Announcement No. DE-FOA-0003139 - Distributed Energy Systems Demonstrations" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.255.
• This funding opportunity was created on Jul 26, 2023.
• Applicants must submit their applications by Jan 29, 2024. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $25,000,000.00 in funding.
• The number of recipients for this funding is limited to 4 candidate(s).
• Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).

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