DOE issues RFP for $1.2 B in support to back transmission lines
The DOE has announced a request for proposals (RFP) for the second round of the Transmission Facilitation Programme.
Image for illustration purposes.
USA, Washington: The Department of Energy (DOE) has announced a request for proposals (RFP) for the second round of the Transmission Facilitation Programme, expecting to deploy up to $1.2 billion in federal support to facilitate transmission buildout through capacity contracts.
US Secretary of Energy Jennifer Granholm said: “There’s no way around it: to realise the full benefit of the nation’s goal of 100% clean electricity by 2035, we need to more than double our grid capacity.”
The Transmission Facilitation Programme is a revolving fund supported by the Bipartisan Infrastructure Law, which enables DOE to borrow up to $2.5 billion to aid the construction of high-capacity transmission lines or to encourage expanded capacity of already planned lines. It will see DOE using capacity contracts to commit to purchase up to 50% of the maximum capacity of a transmission line, acting as an anchor customer providing certainty for financers and customers.
DOE should recover its costs by selling its capacity rights to other customers. The first solicitation under the programme was issued in 2022, while in October 2023, DOE started capacity contract negotiations for up to $1.3 billion with three lines.
Source: Renewables Now