Feds Award Colorado $17.2M in Grid Aid, Support for Microgrid Study

WASHINGTON — The Colorado Energy Office and Department of Local Affairs will share in $17.2 million from the Department of Energy intended to help them improve the reliability of the state’s electric grid, while also supporting a major study of the future role of microgrids.

The funding comes from a provision of the bipartisan infrastructure law that is specifically earmarked to assist states and Native American tribes in bolstering the resilience of their electric grids in response to increases in climate-driven extreme weather events.

In addition to the federal funding, the state Energy Office will also invest about $2.6 million in related grid resiliency work.

“Extreme weather conditions, such as flooding and wildfires, increasingly test the state’s electric grid,” said Will Toor, executive director of the Colorado Energy Office. 

“Improving the resilience of Colorado’s energy infrastructure against climate threats is a key priority for the state. We look forward to putting these funds into action to ensure all Coloradans have consistent access to clean, reliable electricity,” he said.

One of the most exciting aspects of the funding, officials said, is that it will support the development of Colorado’s Microgrid Roadmap, as well as three grant programs that will open applications this fall.

Colorado’s Microgrid Roadmap is one of just a few programs in the U.S. focused primarily on developing new microgrids — especially those centered around community-level systems. 

The Microgrid Roadmap will identify how and where microgrids are needed most to harden the grid and increase electric reliability, while also increasing the use of clean, renewable electricity generation. 

Launched earlier this year by the Department of Local Affairs’ Colorado Resiliency Office, it focuses on strengthening the resilience of essential infrastructure and/or community-based anchor institutions, such as schools, libraries, hospitals or other health care facilities; and law enforcement, emergency medical service providers, or other public safety agencies.

The Department of Local Affairs awarded eight proposals in the first round of Microgrid Roadmap Planning Grants in July 2023 with state funding.

State officials said the infusion of significant federal funding will significantly expand the budget and reach of the MCR Program, creating additional grant opportunities for both the planning and construction/implementation of microgrid projects.

An additional $565,000 in state funding will be managed separately from the federal award and will go towards the construction and implementation of microgrid-tied generation. 

The federal funding is also supporting three grant programs — Microgrids for Community Resilience grant program, Grid Hardening for Small and Rural Communities Grants and Advanced Grid Monitoring Grants — two of which already have open applications this fall.

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