Thursday, June 30 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Today's News
Yesterday's News
Week of Jun 27
Week of Jun 20
Week of Jun 13
Week of Jun 06
Week of May 30
By Topic
By News Partner
Gas News
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    United States : Biden Administration Launches $2.5 Billion Fund to Modernize and Expand Capacity of Americas Power Grid


    May 23, 2022 - TendersInfo - News

     

      The U.S. Department of Energy issued a Request for Information (RFI) seeking public input on the structure of the $2.5 billion Transmission Facilitation Program (TFP), which President Bidens Bipartisan Infrastructure Law created to help build out critical new transmission lines across the country. The launch of this new program, the largest infrastructure law investment in solely transmission, is one of the first down payments on over $20 billion of investments under DOEs new Building a Better Grid Initiative. The TFP is an innovative revolving fund program that will provide Federal support to overcome the financial hurdles to large-scale new transmission lines and upgrade existing transmission as well as the connection of microgrids in select States and U.S. territories. Expanding and modernizing the electric grid will create good-paying jobs to deliver clean, affordable, and reliable energy to everyone, everywhere, anytime. A reliable, resilient electric grid is critical for withstanding climate change impacts and to achieving President Bidens goal of a national grid run on 100% clean electricity by 2035.

      Expanding and strengthening our power grid means we can get Americans power where and when they need it most, and in so doing deploy the clean energy we need to reach our climate goals and ultimately bring down energy costs, said U.S. Secretary of Energy Jennifer M. Granholm. With nearly 70% of the nations grid more than 25 years old, the President's Bipartisan Infrastructure Law is a pivotal catalyst for transmission projects across the nation that will deliver good-paying jobs in the process.

      The current electric grid was not developed with today's electrification needs in mind. Expanding transmission capacity through new and upgraded transmission lines will improve grid reliability, allow new clean power onto the grid, reduce costs, improve energy equity, and drive economic growth and growth in good jobs. As the Biden Administration ramps up expansion of new renewable energy sources, additional transmission will be required to carry that energy across regional lines making it available where it is needed most.

      Independent estimates indicate that we need to expand electricity transmission systems by 60% by 2030, and may need to triple it by 2050 to meet the countrys increase in renewable generation and expanding electrification needs. Rebuilding and improving our nation's aging electric grid is a cornerstone of the Bipartisan Infrastructure Law. More than 70% of the nations grid transmission lines and power transformers are over 25 years old, creating vulnerability. Power outages from severe weather have doubled over the past two decades across the United States and the frequency and length of power failures reached their highest levels since reliability tracking began in 2013 with U.S. customers on average experiencing more than eight hours of outages in 2020.

      DOEs Transmission Facilitation Program

      Under the TFP, DOE is authorized to borrow up to $2.5 billion to assist in the construction of new and upgraded high-capacity transmission lines through three financing tools: loans from DOE; DOE participation in public-private partnerships; and capacity contracts with eligible projects in which DOE would serve as an anchor customer. These tools represent an innovative approach that can spur valuable new lines that otherwise would not get built. The first solicitation will be limited to applicants seeking capacity contracts for eligible projects that will begin operation no later than December 31, 2027. The initial solicitation will include a deadline for submissions, but the timing of the determination will be based on the time necessary to conduct due diligence on the proposed project.

      Through the capacity contracts under this program, DOE will commit to purchasing up to 50% of the maximum capacity of the transmission line for up to 40 years. By buying up to 50% of the planned capacity of a transmission project, DOE can reduce financial challenges often facing new transmission programs or upgrades to existing transmission lines by encouraging and de-risking additional investment. A goal of this program is for DOE to continue buying capacity until customer demand has increased enough to cover those costs. Then DOE will remarket the capacity, thereby replenishing the fund.

      DOE expects to issue another Notice of Intent/RFI in early 2023 that will incorporate the loan and public-private partnership financing tools in addition to the capacity contracts.

    TOP

    Other Articles - Utility Business / General


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.