"Creating more efficient and flexible wholesale markets that will support a more resilient and reliable grid will be critical as new load and generation come online. Functioning wholesale markets provide a platform for energy trading and the integration of electric resources into the grid. Efficient, fair, and transparent market constructs are thus foundational to transitioning to a clean, reliable, equitable electric grid. This funding opportunity announcement (FOA) will assist applicants—States, ISOs/RTOs, and domestic entities that have partnered with States and/or ISOs/RTOs — that have formed partnerships with or otherwise include States, ISOs/RTOs to perform analytical studies on critical market issues or convene stakeholders to address issues facing developing or existing wholesale markets. GDO suggests five (5) broad priorities for proposed projects: 1) seams between markets, 2) regional resource adequacy, 3) market design and price formation, 4) regional footprint studies, and 5) integrated regional planning approaches.

There are two topic areas in this funding opportunity:

• Topic Area 1: Analytical Studies – Market concepts that GDO considers ripe for analytical studies are outlined below. Proposed projects can draw from elements of any one of the five concepts in this FOA or may include areas of analysis not contemplated in this FOA. If submitting an application that covers multiple topic areas, separate applications must be submitted each area.
• Topic Area 2: Education and Convenings – GDO intends to facilitate State (individually or in collaboration with other States), public interest organization, and utility convening and education programs, which can be replicated to benefit additional States and RTOs/ISOs. Accordingly, DOE seeks applications for multi-state stakeholder educational efforts or convenings to consensus-build on market structures or reforms available in or appropriate for differing regions related to wholesale electricity markets. Convenings on wholesale electricity markets must involve more than one State and/or RTO/ISO. This convening topic area may include multi-state efforts to organize new wholesale markets, including developing or expanding DAMs. Education on wholesale electricity markets could include activities such as developing informational materials on wholesale markets for State agencies, including utility commissions and State energy offices.

The Wholesale Electricity Market Studies and Engagement Program (WEMSE) program will include three rounds of funding. The first round has passed. Subsequent rounds of funding will open in 2024. The multiple rounds of funding are intended to afford states, market operators, and other wholesale market stakeholders the time to develop coalitions and coordinate joint applications as appropriate.