Towards a Rural Energy Action Plan: Cooperative and Municipal Utility Investment Needs and Strategies

Electric cooperatives, small municipalities, and rural communities face distinct challenges in deploying modern, resilient, and reliable technology to serve their customers. These communities support critical lifelines across the U.S. and account for a majority of household energy demand, yet they must navigate supply chain constraints, climate impacts, cybersecurity risks, and evolving regulatory landscapes with fewer resources than larger investor-owned utilities.

Key challenges shaping the future of cooperative and municipal utilities include:

• Serving underserved communities – Rural cooperatives provide electricity to 92% of persistent poverty counties, making equitable infrastructure investment a priority.
• Policy and regulatory shifts – Direct pay tax credits and new generation & transmission business models are reshaping cooperative energy ownership.
• Supply chain and scale limitations – With an average size of just 47,000 customers, rural utilities often pool resources through state or cooperative-level organizations.
• Federal funding opportunities and gaps – While the Department of Energy (DOE) has made historic grid infrastructure investments, a substantial funding gap remains.

To address these pressing issues, Idaho National Laboratory (INL) is leading the development of a DOE Grid Deployment Office report on grid modernization needs and recommendations for cooperative and municipal utilities. This panel will bring together national laboratory researchers and utility leaders to discuss preliminary findings and innovative infrastructure investments that can help scale modernization efforts nationwide.

Key discussion topics will include:

• Lessons from real-world grid modernization projects, including:
  • Novel microgrid configurations featuring floating PV.
  • Net-zero affordable housing initiatives that integrate clean energy.
  • Vehicle-to-grid (V2G) charging demonstrations to enhance resilience.
  • Common themes and strategies identified through national laboratory research and ongoing industry collaborations.

Featuring experts from Idaho National Laboratory, Sandia National Laboratories, and Oak Ridge National Laboratory, this session will provide critical insights into the future of rural grid modernization, scalable investment models, and cooperative utility innovation.