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The U.S. Department of Energy (DOE) has announced up to $28 million in funding through its Collaborations Advancing Rapid Load Additions (CARLA) Program to enhance grid infrastructure and meet the rising electricity demands of data centers, artificial intelligence applications, and domestic manufacturing expansion. This initiative aims to enable rapid grid modernization while minimizing cost increases for residential and small commercial customers.

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The program, administered by ConnectWerx, seeks to establish collaborative partnerships between state utility commissions, grid operators, and high-demand electricity users such as data centers and energy-intensive manufacturers. These groups will work to develop frameworks for system planning, cost recovery, and risk allocation, ensuring grid readiness for significant near-term electricity demand increases. Up to five projects will be selected to receive funding, emphasizing geographic diversity and varied use cases across urban and rural settings.

The CARLA initiative addresses a projected surge in electricity usage over the next decade, driven by trends in electrification, industrial growth, and advancements in AI. Selected collaboratives will focus on forecasting electricity demand, planning for infrastructure upgrades, and identifying opportunities to meet growing power needs, such as through demand flexibility and new generation options.

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Eligibility for funding requires a lead applicant from a state entity or public utility commission, partnered with a grid operator and at least one large electricity user. Collaboratives must also demonstrate expertise in energy systems, regulatory policy, and stakeholder engagement. Applications will be evaluated on technical merit, project feasibility, and team qualifications, with final selections expected in June 2025.

Key dates include the opening of the application period on January 15, 2025, a concept paper submission deadline of February 28, 2025, and a full application deadline on April 24, 2025. Awards will be finalized in the summer of 2025, with the goal of allowing projects to begin critical work on ensuring reliable, affordable grid services across the country.

Article by multiple RFHC contributors.

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