DC's Public Service Service Commission Seeking RFPs for Transactive Neighborhood Renewable Microgrid Pilot

Jan. 8, 2025
The project should be sized to target a neighborhood of 50-200 residences and other buildings but can be larger,” reads the Public Service Commission of DC’s document. “Buildings included in the microgrid can be residential, commercial, or municipal.

Utility regulators for the District of Columbia are willing to wager that investment to strengthen the local grid is best deployed in new distributed energy projects that include multi-customer and neighborhood microgrids, according to a new request for proposals (RFP).

The Public Service Commission of the District of Columbia has released the new RFP seeking pilot projects around a “transactive neighborhood renewable microgrid” concept. The microgrid pilot would connect multiple customers and would be supported by local utility Pepco.

It would receive funding from a special account created when corporate parent Exelon acquired Pepco about eight years ago. The $21.55 million pilot account, funded as part of the merger agreement, is set aside by the Public Service Commission of DC for modernization of the district’s electricity delivery system. 

“The project should be sized to target a neighborhood of 50-200 residences and other buildings but can be larger,” reads the Public Service Commission of DC’s document. “Buildings included in the microgrid can be residential, commercial, or municipal.”

The maximum commission funding contribution for the proposed microgrid would be $10 million, although an accepted project developer could seek additional financing elsewhere, according to the RFP. The contract would be in place for five years, at least two of which would include operations of the microgrid.

The transactive neighborhood renewable microgrid would be the third of four pilots supported by the funding, according to the RFP.

The Public Service Commission of DC is only seeking proven technologies for the microgrid pilot. Applicants must be able to deliver working examples of grid services, greenhouse gas emissions reduction and customer benefits, the report says.

“Although this is a pilot project, the commission expects the microgrid and transactive platform to continue operating after the pilot period concludes,” reads the RFP. “As such, it should be designed with a continuity plan in place.”

The project could also demonstrate the integration of existing microgrid and distributed energy resource (DER) assets, as well as the interaction of networked microgrids.

Deadline to submit the RFP is April 17.

Microgrids are not new to the nation’s Capital region. Gallaudet University is home to a hybrid microgrid on the campus that was featured in content at last year’s Microgrid Knowledge Conference sessions in nearby Baltimore.

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The proposed transactive neighborhood microgrid can include on-site DERs from solar photovoltaic to battery storage to cogeneration, biomass and microturbines, among other options. The project can vary in size but be no bigger than 20 MW in capacity, according to the RFP.

Numerous power sector entities contend that the future of strengthening the main grid lies in uniting distributed energy resources and microgrids in a more decentralized, connected layout. Managed DER can contribute demand response, virtual power plant, voltage and frequency support services for the larger utility grid, particularly as it is challenged by new load demand from new data centers coming online and industrial and transportation electrification.

 

About the Author

Rod Walton, Managing Editor | Managing Editor

For Microgrid Knowledge editorial inquiries, please contact Managing Editor Rod Walton at [email protected].

I’ve spent the last 15 years covering the energy industry as a newspaper and trade journalist. I was an energy writer and business editor at the Tulsa World before moving to business-to-business media at PennWell Publishing, which later became Clarion Events, where I covered the electric power industry. I joined Endeavor Business Media in November 2021 to help launch EnergyTech, one of the company’s newest media brands. I joined Microgrid Knowledge in July 2023. 

I earned my Bachelors degree in journalism from the University of Oklahoma. My career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World, all in Oklahoma . I have been married to Laura for the past 33-plus years and we have four children and one adorable granddaughter. We want the energy transition to make their lives better in the future. 

Microgrid Knowledge and EnergyTech are focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.

Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.