Join the Grid Deployment Office at 3:00 p.m. ET on February 21 to learn more about the Transmission Facilitation Program’s round two capacity contracts RFP.
February 15, 2024
minute read time
Join the Grid Deployment Office at 3:00 p.m. ET on February 21 to learn more about the Transmission Facilitation Program’s round two capacity contracts RFP.
On February 6, 2024, GDO announced a Request for Proposals (RFP) for the second round of the Transmission Facilitation Program, a $2.5 billion revolving fund that helps overcome financial hurdles facing large-scale new and upgraded transmission lines. Through the RFP, DOE anticipates deploying up to $1.2 billion in federal support to accelerate transmission buildout through capacity contracts, an innovative approach that increases the confidence of investors and potential customers while reducing risk for projects.
The RFP is seeking project proposals to use capacity contracts that commit DOE to purchasing up to 50% of the maximum capacity of a transmission line. Transmission infrastructure financing relies on demonstrating to potential investors that the line has committed customers. But customers often can’t commit until they are sure a project will be developed and available when needed. DOE’s capacity contract establishes the agency as an anchor customer who can provide certainty for potential financers and other customers. By offering capacity contracts to late-stage and “shovel ready” projects, DOE will continue to increase the confidence of investors and potential customers and reduce the risk of project developers under-building or under-sizing needed transmission capacity projects. DOE will sell its capacity rights in these projects to other customers to recover its costs.
The submission deadline for the first part of the application process is March 11, 2024.
A public webinar will be held at 3 p.m. Eastern time on February 21, 2024, to provide additional information. Registration is required.