; (D) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); and (E) an electric utility, including— (i) a rural electric cooperative; (ii) a municipally owned electric utility; and (iii) an investor-owned utility. (3) Selection requirements In selecting eligible entities to receive a loan under this section, the Secretary shall, to the maximum extent practicable, ensure— (A) regional diversity among eligible entities that receive the loans, including participation by rural States and small States; and (B) that specific projects selected for loans— (i) expand on the existing technology demonstration and deployment programs of the Department of Energy; and (ii) are designed to achieve 1 or more of the objectives described in paragraph (4). (4) Objectives Each demonstration and deployment project selected for a loan under paragraph (1) shall include 1 or more of the following objectives: (A) With respect to energy storage systems, the improvement of— (i) the feasibility of microgrids or islanding