ENERGYWERX, through a Partnership Intermediary Agreement (PIA) with the U.S. Department of Energy (DOE) Interconnection Innovation e-Xchange (i2X) program, is looking to fund pilot tests of innovative interconnection solutions under the Interconnection Cost Reduction Solutions for Distribution (iCRS-D) program. This program will help address the National Energy Emergency by supporting innovations to streamline and expedite interconnection services by implementing cutting-edge technology solutions, such as grid enhancing technologies, grid-interactive loads, flexible interconnection, micro-grids, and many other innovations. The iCRS-D program aims to reduce interconnection costs related to grid upgrades by 70% for generators, large loads, and hybrid facilities connecting to the distribution grids.
To usher in a new era of American prosperity, we must ensure all Americans and domestic industries have access to affordable, reliable, and secure electricity. United States electricity demand is growing at an extraordinary pace due to the rapid rise of large commercial and industrial loads (e.g., data centers) and electrification. The challenge is compounded as Americans face rising electricity prices across the country.
The iCRS-D program will provide $4 million to fund up to four organizations, each of which will lead a multi-stakeholder partnership at the local, state, or regional level. Each partnership will execute a Lighthouse Project - a pilot program that develops and demonstrates new technologies and effective solutions – to increase data access and transparency, streamline and expedite interconnection services, and maximize economic efficiency. Lead organizations, with their partners, will apply their distribution-level interconnection expertise to prioritize and adapt practical solutions for load and generation interconnection. These efforts will deliver tested approaches to scalable interconnection innovations that improve processes, reduce overall costs, and maintain a reliable grid.
The mission of i2X is to enable simple, fast, and affordable interconnection while enhancing the reliability and security of our electric grid. To solve complex interconnection challenges collaboratively, i2X developed practical solutions for distributed energy resources interconnection through extensive stakeholder engagement (for example solutions, see FAQ section). These solutions address key issues such as data transparency, process simplicity, grid reliability, and economic efficiency of interconnection services in the distribution grid. Each solution includes actionable steps and collaborative activities for interconnection stakeholders, such as distribution utilities, energy project developers, state and local governments, research institutions, and public interest organizations. DOE also launched the Collaborations Advancing Rapid Load Additions (CARLA) in 2025. CARLA focuses on developing new approaches for system planning, cost recovery, and risk allocation for electricity demand growth, in ways new large loads are added faster while minimizing risks of electricity rate increases for households and small businesses.
The demand for electricity in the United States has increased rapidly for the past few years as homes, commercial buildings, and industrial facilities electrify, manufacturing hubs expand, and energy-intensive sectors, such as artificial intelligence (AI) and data centers, continue to grow. Current grid capabilities and interconnection services are unable to meet America’s rising energy needs effectively and efficiently. Current challenges include inefficient regional processes and management systems that increase interconnection timelines, insufficient grid hosting capacity and data access that inhibit effective planning and add unnecessary costs, and a need for innovative interconnection services to support solutions that maximize grid use and mitigate costly grid upgrades (such as hybrid facilities and flexible interconnection). There is an urgent need to rapidly transform the current system and unleash American energy to keep pace with the growing electricity demand.
On January 20th, 2025, the White House declared a National Energy Emergency and followed with a call to action through the executive orders Removing Barriers To American Leadership In Artificial Intelligence and Unleashing American Energy. In response to these priorities, i2X supports and augments DOE actions to maximize the use of federal resources such that state and local governments, utilities, grid operators, grid customers, and other stakeholders address interconnection constraints and meet new demand in a cost effective and efficient manner.
The iCRS-D program aims to address distribution grid interconnection challenges with $4 million to directly fund up to four lead organizations to each manage a local, state, or regional partnership.
These partnerships will develop and implement Lighthouse Projects that remove barriers, streamline processes, and reduce overall costs of distribution interconnection using practical solutions. Efforts may address features across the planning and operations of the distribution grid to increase data access and transparency, streamline and expedite interconnection services, and maximize economic efficiency. Partnerships will define quantitative outcome goals and evaluate performance against them. See the FAQ section for examples.
Through the implementation of their Lighthouse Projects, partnerships will facilitate cross-learning, conduct analytical research and modeling, provide subject-matter expertise to support technical innovation, pilot solutions in a local environment, and detail outcomes and lessons learned in interconnection innovation.
Selected lead organizations will receive up to $1 million.
2 years
Projects should implement process and technology solutions in the distribution system that aim to improve interconnection timelines and costs by maximizing economic efficiency, increasing data access and transparency or by streamlining services. Topical solution examples include, but are not limited to:
ENERGYWERX is compiling a Teaming Partner List to facilitate the formation of project teams for this Opportunity. The Teaming Partner List allows entities that may wish to participate in a project to express their interest to other applicants and explore potential partnerships.
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