Press Release
☷Biden Harris Administration Requests Proposals to Expand and Modernize the Nation s Electric Grid
U.S. Department of Energy ( By Press Release office)
Feb 08,2024
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President Biden ' s Investing in America Agenda is providing an additional $1 . 2 billion in funding to expand access to affordable and reliable clean energy . The U . S . Department of Energy ( DOE ) has announced a Request for Proposals ( RFP ) for the second round of the Transmission Facilitation Program , which is supported by the Bipartisan Infrastructure Law . This program aims to overcome financial obstacles faced by large - scale transmission lines . Through this RFP , the DOE plans to deploy up to $1 . 2 billion in federal support to speed up the buildout of transmission lines by using capacity contracts . These investments will unlock more state and private sector capital to improve the power grid and provide clean electricity to more American communities and businesses . U . S . Secretary of Energy Jennifer M . Granholm emphasizes the need to double the grid capacity to achieve the goal of 100% clean electricity by 2035 . The DOE ' s National Transmission Needs Study estimates that the United States must significantly increase regional and interregional transmission capacity by 2035 and 2050 to meet growing demand and overcome challenges posed by extreme weather and the transition to clean energy . The Transmission Facilitation Program , administered by the Grid Deployment Office , allows the DOE to borrow up to $2 . 5 billion to support the construction of high - capacity transmission lines . The RFP released will use capacity contracts to commit the DOE to purchase a portion of the maximum capacity of a transmission line , which helps attract potential investors . But customers often can ' t commit until they ' re sure a project will be developed and available when needed . The DOE ' s capacity contract makes them an anchor customer who can provide certainty for potential investors and other customers . By offering capacity contracts to projects that are almost ready to go , the DOE will continue to increase investor confidence and reduce the risk of projects being too small or not meeting the needed transmission capacity . The DOE will sell its capacity rights in these projects to other customers to cover its costs . The RFP is an extension of the first solicitation issued in 2022 . On October 20 , 2023 , the DOE announced that it had entered into negotiations for capacity contracts worth up to $1 . 3 billion with three transmission lines crossing six states . These projects will add 3 . 5 gigawatts of grid capacity throughout the United States , which is enough to power around 3 million homes and create over 13 , 000 jobs . The selected projects are the Cross - Tie 500kV Transmission Line ( Nevada , Utah ) , Southline Transmission Project ( Arizona , New Mexico ) , and Twin States Clean Energy Link ( New Hampshire , Vermont ) . In response to industry feedback , the application and review process for the RFP released today is divided into two parts to make it easier for applicants . The deadline for Part 1 of the application is March 11 , 2024 . There will be a public webinar on February 21 , 2024 , at 3 p . m . Eastern time to provide more information . You need to register to attend . In the near future , the DOE ' s Grid Deployment Office will release a separate RFP that focuses on public - private partnerships to build transmission infrastructure in Alaska , Hawaii , and U . S . territories , connecting isolated microgrids to the grid . The Grid and Transmission Programs Conductor has more information on DOE - administered programs and can answer questions about different funding opportunities offered by the Department . Find out more about the Grid Deployment Office .
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